Saudi Aramco oil giant details projected record IPO

Saudi Aramco unveils plans to kick off blockbuster float next week

Meanwhile, adding that Japanese would unlikely to invest on Saudi Aramco IPO, JXTG Holdings' President, Tsutomu Sugimori said in an earnings' briefing on Friday (November 8th), "Japanese companies have stakeholders and they need good reasons to explain to shareholders why they would make such hefty investments and we need to do strict due diligence".

The value of the company is valued between $2 trillion and $2.3 trillion, CNBC reported, compared with USA oil companies' Exxon Mobil with a market cap of almost $300 billion and Chevron at $229 billion.

He was responding to a question on whether Japanese companies would follow Chinese investors after Bloomberg reported that Chinese state-owned firms, including Sinopec Corp, were considering investing up to $10bn in the Aramco share offer.

The prospectus said the offering period will start on Sunday, November 17, ending on November 28 for individual investors and on December 4 for institutional investors.

Sources have said the company could sell 1%-2% on the Saudi stock market.

Crown Prince Mohammed bin Salman has said the company is worth some $2 trillion, but analysts estimate the value is closer to $1.5 trillion.

The document also highlighted risks including the potential for terrorist attacks, the possibility of antitrust legislation and climate change concerns that could reduce global demand for hydrocarbons.

Aramco's low-priced oil production and its enormous reserves have helped transform the kingdom into one of the world's top 20 economies, but the state's control of the company carries a number of risks for investors.

More news: Volkswagen Teases Its Next Electric Car, the ID. SPACE VIZZION

Japanese investors will probably steer clear of Aramco's IPO despite the fact that Saudi Arabia holds a significant share of Japan's crude oil imports.

The government will then have a lockup period of a year on further share sales after this initial period.

Aramco has been in talks with Gulf and Asian sovereign wealth funds and wealthy Saudi individuals to secure top investors of the IPO, but no cornerstone investor is yet to formally agree to a deal.

It was initially thought about 5% of Aramco would be sold, but the final figure is now expected to be half that.

Bankers have told the Saudi government that investors will likely value the company at around $1.5 trillion, below the $2 trillion valuation touted by MBS when he first floated the idea of an IPO nearly four years ago.

At the top valuation of $2 billion, Aramco could potentially raise $40 billion, topping the record-breaking $25 billion raised by Chinese e-commerce giant Alibaba BABA.N in 2014.

The world's most profitable company has published more details about its planned stock market flotation.

Related News:



Most liked

Marshall Kmart store to be last open in MI
Two Michigan department stores will close by February 2020 as Sears Holding Corporation continues "pruning operations". The Sears in West Dundee's Spring Hill Mall is set to close by February, its parent company announced.

Mercury putting on rare show Monday, parading across the sun
When Mercury transits the Sun, it causes a slight dip in the Sun's brightness as it blocks a tiny portion of the Sun's light. In the early 1600s, Johannes Kepler discovered that both Mercury and Venus would transit the Sun in 1631.

Dollar holds gains on progress in U.S.-China trade talks
If a first phase trade deal is done, there is agreement to roll back some existing tariffs, but only if the deal is agreed. US Treasury yields traded mostly below three-month highs while Germany's 10-year bond yield slid from five-month highs.

OnePlus 8 Pro Tipped To Boost Refresh Rate For Even Smoother Display
OnePlus is the company that mainly became popular in creating smartphone displays with higher refresh rates. One of the key features of this smartphone was its AMOLED display that boasted of a 90 Hz refresh rate.

No Wall Too High to be Broken Down: German Chancellor Angela Merkel
German President Frank-Walter Steinmeier thanked Eastern European allies for empowering a peaceful revolution. He said that the USA will continue to work with Germany, which he called one of its most treasured allies.

Woody Allen and Amazon end legal battle
A Rainy Day in NY was released this fall outside the United States by his production company Gravier Productions. Allen's attorneys and lawyers for Amazon filed a joint notice dismissing the case on Friday night .

France on brink of Fed Cup victory after Mladenovic stuns Barty
Australia's bid to end a 45-year sporting drought has ended in heartbreak, with France winning the Fed Cup final 3-2 in Perth. Barty took advantage, pushing her opponent round the court to get to three break points.

Iowa man requests release from life in prison because he 'briefly died'
A prisoner has claimed that his life sentence is technically over because he died and was resuscitated behind bars. The District Court ruled on Schreiber, a decision made by his lawyer to the State Court of Appeal.

Bevin Refuses to Concede Kentucky Gubernatorial Race, Citing Voting ‘Irregularities’
Just last weekend Vice President Pence and former Vice President Joe Biden held events in the state for their respective parties. Bernie Sanders Wednesday night accused Republican lawmakers of "threatening to effectively overturn the Kentucky election".

Golden State Warriors Steph Curry will miss the rest of the season
Well, it looks like we won't be seeing Stephen curry for the remainder of the 2019-2020 season. However, Ric Bucher wrote in Bleach Report that the original forecast may have been optimistic.

Kmart Abandons Hometown By Closing Last Two Detroit Area Stores
The company added it still expects "to realize a significant return on our extensive portfolio of owned and leased real estate". The company encourages shoppers to use the store locator function on their websites to find the closest Sears or Kmart location.

It looks Like You'll Need Disney Plus To Understand Future MCU Movies
However, the first Marvel show, Falcon and the Winter Soldier , won't premier until next Fall. If that turns out to be true, I wonder how they'll explain their appearance.

WhatsApp for Business gets Catalog Feature to Showcase Products
Catalogs include lists of photos, prices and descriptions of products and services, plus SKU codes to identify specific products. The new feature, Catalogs could be used as a mobile storefront for businesses to easily showcase and share their goods.

Remembrance Sunday events in East Berkshire and South Bucks
Members of the town council will be attending the procession and the mayor of Christchurch, Cllr Lesley Dedman, will lay a wreath. Due to the large number of attendees expected at the service there will also be a satellite broadcast in the adjoining Scout hut.

PL: Chelsea record sixth straight win, Leicester beat Arsenal
Chelsea recorded a sixth consecutive Premier League win for the first time since their title-winning season of 2016-17. Roy Hodgson was satisfied with his Crystal Palace players despite their 2-0 defeat against Chelsea at Stamford Bridge.