Saudi Arabia denies reports that record-breaking stock market listing of oil giant has been shelved

Sources said deal had been called off, however Saudi denials will come as a relief to advisers who stand to make $200m out of the IPO

The listing of Aramco would raise up to $100bn for Saudi Arabia (Reuters)

Riyadh has moved to quash reports the flotation of state owned oil giant Saudi Aramco has been called off.

The IPO of a 5 per cent chunk of the company would be the biggest stock market float on record, with an estimated value of $2 trillion (£1.6 trillion), and would be expected to raise up to $100bn for Saudi Arabia.

The move has been in the works for several years but no date or location has been set and, on Wednesday, Reuters reported the flotation had been shelved.

The news service said Saudi Arabia had pulled the domestic and international listings of Aramco and cited senior industry sources. It also reported advisers working on the deal had been disbanded.

The news followed reports this year the chances of the kingdom continuing with plans for an international listing were “diminishing”.

However on Thursday, Saudi Arabia’s energy minister Khalid al-Falih said: “The government remains committed to the initial public offering of Saudi Aramco, in accordance with the appropriate circumstances and appropriate time chosen by the government.”

The Saudi government also said, in preparation for the listing, it had “undertaken a number of major preparatory measures, including issuing a new income tax law as it relates to hydrocarbons activities; reissuing a long term exclusive concession; and appointing a new board of directors, amongst other measures to safeguard its interests and those of the company’s future private shareholders”.

London, New York and Hong Kong are among potential hosts for the record breaking IPO.

The kingdom’s denial of the IPO cancellation will come as a relief to bankers and advisers who stand to make $200m from the float.

According to reports, international banks JP Morgan, Morgan Stanley and HSBC were appointed as global coordinators and boutique investment banks Moelis & Co and Evercore were chosen as independent advisors. Law firm White & Case was reportedly selected as legal adviser for the float.