Page 16 - DMEA Week 17 2021

DMEA NEWS IN BRIEF DMEA

COMPANIES oil firm prepares to sell another slice of its of a 1% stake by a leading global energy
business to international investors. company in an important deal that would
Grid operator Baskent 1% of Aramco to a leading global energy boost Aramco’s sales in ... a major country,”
Saudi Arabia was in discussions to sell
Prince Mohammed said, without elaborating.
Dogalgaz applies for IPO company and could sell further shares different stakes, and part of Aramco’s shares
“There are talks with other companies for
including to international investors within the
Baskent Dogalgaz, a natural gas distributor next year or two, Crown Prince Mohammed could be transferred to the (Saudi) Public
that serves Ankara, has applied to Turkey’s bin Salman said in televised remarks on Investment Fund and a part listed ... on the
capital markets board for permission to make Tuesday. Saudi bourse,” he said in an interview aired
an initial public offering (IPO). A stake of 1% would equate to around $19 by Saudi TV marking the fifth anniversary of
Torunlar Group bought the gas grid billion based on Aramco’s current market Vision 2030.
operator in a privatisation deal worth $1.16bn capitalisation. The 2019 Aramco IPO was seen as a pillar
back in 2013 from the Ankara Metropolitan Sovereign wealth fund China Investment of the economic diversification programme
Municipality. Corporation (CIC) was among those that aimed at attracting foreign investment.
With nearly 1.9mn customers, Baskent could invest, two sources told Reuters. Prince Mohammed said in the
Dogalgaz ranks as Turkey’s largest natural Aramco was talking to CIC, as well as interview that Riyadh was strengthening its
gas distributor. It holds a licence to provide Chinese national oil companies, said one of relationships with China, India and Russia,
natural gas in the capital until 2037. the sources close to CIC. None of the Chinese though the United States remained a strategic
The company added some 70,000 companies could be reached immediately for partner despite some differences with the
households to its subscriber base each year. comment. Biden administration, which has taken a
Last year, its revenues amounted to Turkish Aramco had been in touch with Chinese tougher stance on Saudi Arabia.
lira 5.04bn (€508mn). investors for a few years and CIC is the most “China has said Saudi Arabia is a strategic
If it goes ahead, the IPO would mark the likely investor, said the second source with a partner, India has said Saudi Arabia is a
first such offering of a natural gas distribution state-backed private equity fund. strategic partner and Russia has also said
company in Turkey. “The kingdom does have close relations Saudi Arabia is a strategic partner,” the prince
Separately, Korkmaz Ergun, general with China,” said a third source, who is close said.
manager of Borsa Istanbul, has predicted that to Aramco. “The major shareholder will Friction between China and the United
the number of IPOs in Turkey this year will decide what to do with their shares.” States has flared in recent months on a range
exceed 40. Saudi Arabia, the world’s biggest oil of issues, including Taiwan and Beijing’s use
Since the start of the year, 11 companies exporter, retained its position as China’s of forced labour in its northwestern Xinjiang
have gone public with a total IPO volume of biggest crude oil supplier for a seventh province, home to the Muslim Uighur
TRY6.6bn, he added. consecutive month in March. minority.
“We expect public offerings to continue Another source said before the COVID-19 REUTERS
this year thanks to government incentives pandemic, Aramco had toured around China
provided for IPOs, such as corporate tax looking for investors, talking to all the major
concessions,” Ergun said. state investors with overseas money, but REFINING
BNE few were interested. CIC and China’s Silk
Road Fund were also among the firms they KBR awarded FCC
Major Chinese investors in approached. regenerator contract by
Aramco, the world’s biggest oil company,
talks to take Aramco stake listed on the Saudi bourse in late 2019, raising
$25.6 billion in the IPO and later sold more
Major Chinese investors are in talks to buy a shares under a “greenshoe option” to raise the SAPREF
stake in Saudi Aramco, several sources told total to $29.4 billion. KBR, Inc. has received a contract from
Reuters on Wednesday, as Saudi Arabia’s state “There are talks now for the acquisition SAPREF for its fluid catalytic cracking (FCC)

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