Nasser told CNBC the Reuters report is “incorrect.” He noted that Aramco has undertaken a substantial amount of work to prepare for the IPO, including converting the enterprise into a joint stock company, appointing new board members and having its reserves audited by a third party.
“All the elements that are required for listing Saudi Aramco were done. So it shows you the commitment of the government for listing Saudi Aramco,” he said.
Aramco in July confirmed that it is in early stage discussions with the kingdom’s Public Investment Fund to purchase the sovereign wealth fund’s 70 percent stake in SABIC. The acquisition would advance Aramco’s goal of producing more high value petrochemicals and deliver a windfall to the Public Investment Fund, offsetting the need for the Aramco IPO.
Nasser warned in July that negotiations over SABIC could delay the Aramco IPO. On Sunday, he told CNBC that Aramco is still in the early stages of due diligence.
If the deal moves forward, Aramco will need to negotiate the sale with the Public Investment Fund and go through various regulatory processes. If and when the deal is finalized, Aramco will have to overhaul its balance sheet to integrate SABIC, he said.
“It’s a major deal. We are doing the due diligence currently. And you cannot list while you are going through an acquisition of this size,” Nasser said.
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