U.S. investors expressed concerns about several aspects of Saudi Arabian Oil Co.'s planned initial public offering during meetings over the past few weeks, Bloomberg News reported, citing people familiar with the discussions.
U.S. mutual fund firms and hedge funds were concerned about, among other things, Saudi Arabia's $2 trillion valuation target for the world's largest oil producer, Aramco's dividend payout policy and shale oil growth pressuring prices in the next few years.
Several hedge funds believe that OPEC and Russia will not cut oil production beyond 2018 to keep prices high.
Aramco did not confirm or deny whether meetings with U.S. investors in New York, Houston and Washington took place. Aramco's IPO may be delayed to the first half of 2019, with Saudi Oil Minister Khalid Al-Falih describing the deadline for the second half of 2018 as "artificial," according to the report.
Saudi Crown Prince Mohammed bin Salman is planning a trip to the U.S., where he will meet with President Donald Trump on March 20. Trump wants the listing to come to New York, which is competing with London and Hong Kong.
