Saudis call off Aramco IPO: report

Saudis call off Aramco IPO: report

Saudis call off Aramco IPO: report

Saudi Arabia has called off the domestic and international initial public offerings of state oil company Aramco, according to a Reuters report that cited four unnamed senior industry sources.

Teams of financial advisers working on the proposed IPO have been disbanded, the report said.

The Wall Street Journal reported last month that the preparations for Aramco’s public listing had stalled amid fears of the heightened public scrutiny that being public would bring to the oil company.

The IPO, which was expected to raise $100 billion and create the largest publicly traded company ever, was first proposed in 2016. It was also meant to be a key component of Saudi Arabia’s plan to diversify away from oil.

Related: Tesla stock ends higher as JP Morgan joins deal doubters

Saudi Arabia’s ongoing attempts at diversification have landed the kingdom in international news headlines recently, including reportedly playing a role in Tesla Inc.’s TSLA, -0.60% going-private saga.

Tesla Chief Executive Elon Musk has said representatives from the kingdom’s sovereign-wealth fund approached him several times in recent months about taking the car maker private, citing their interest in being less reliant on oil. The fund has bought a stake of almost 5% in Tesla.

See also: Elon Musk left plenty of questions about Tesla going private, experts say

Earlier this week, another Reuters report said the fund is mulling an investment in electric-car startup Lucid Motors Inc.

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Claudia Assis

Claudia Assis is a San Francisco-based reporter for MarketWatch. Follow her on Twitter @ClaudiaAssisMW.

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