Aramco’s record-breaking IPO is ‘not exactly a free market price,’ analyst says

A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018. “It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul. In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a w


A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018.
“It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul.
In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a w
Aramco’s record-breaking IPO is ‘not exactly a free market price,’ analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, exactly, trading, ipo, listing, saudi, international, market, aramcos, aramco, oil, recordbreaking, price, shares, free, dhabi, analyst


Aramco's record-breaking IPO is 'not exactly a free market price,' analyst says

A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018. Christopher Pike | Bloomberg | Getty Images

ABU DHABI, United Arab Emirates ⁠— Saudi Arabia made history this week as it debuted its crown jewel, Saudi Aramco, for public trading on the kingdom’s stock exchange. Shares shot up to the maximum allowed for the world’s largest-ever IPO at its launch, surging 10% on Wednesday and again on Thursday to briefly hit a valuation of $2 trillion before paring gains. The listing of 1.5% of the kingdom’s state-run oil giant reached a $1.88 trillion market cap on its first day of trading, putting it well above that of Microsoft and Apple. The astronomic $2 trillion figure, long pursued by Saudi Crown Prince Mohammed bin Salman since he announced his idea of the float in 2016, defied the expectations — and the ridicule — of much of the global finance community. But weak international interest, suspicions of heavily government-influenced local demand and scrapped plans to book-build outside the Gulf region have raised the question of how genuinely successful the public listing really is ⁠— and whether it could perform similarly if tested in international markets. “It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul. “I think it was a managed sale with a lot of government involvement,” said Rutledge, who served as an economic advisor to three U.S. administrations and the government of Kuwait. “They managed creating the book of buyers, but they also determined how many shares were sold. And so with that, you’ve got both levers. You can make the market cap almost whatever you want at that level.”

In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a wide range of institutions reflects trust in our long-term strategy.” After shares began trading Wednesday, Aramco CEO Amin Nasser told CNBC that the initial pricing of 32 riyals per share ($8.53) “was agreed based on full analysis and evaluation” and that the IPO on the Tadawul is “a sign of how strong the stock exchange is.” Nasser noted that local demand for shares was five times oversubscribed and said the listing “embodies Vision 2030,” the agenda set out by the crown prince to diversify the Saudi economy. Still, market and regional analysts were quick to point out that the listing fell short of the crown prince’s grand vision, which initially targeted an international listing. The kingdom had to rely predominantly on local investors after canceling roadshows in London and New York due to paltry foreign investor interest.

“It’s a success on paper. They delivered on a complicated IPO, the largest in the world,” said Ayham Kamel, head of the Middle East and Africa practice at Eurasia Group. “But the key risk facing Mohammed bin Salman is that a small IPO does not really move the needle on his diversification program, even if readjusted as part of a new Vision 2030. He needs to sell more of the company and begin to attract foreign investors.” Saudi Arabia’s recently announced 2020 budget revealed a budget deficit increase to 6.4% of gross domestic product from 4.2% in 2019, as its economy feels the pain of fiscal tightening and lower oil prices. The International Monetary Fund says Saudi Arabia needs oil at $78 a barrel to balance its budget ⁠— a level not seen in five years, and far from the $58 to $63 range of the last few months. Several energy forecasters see oil reaching only $70 a barrel by the end of 2020.

Amin H. Nasser, President and CEO of Aramco, rings the bell during the official ceremony marking the debut of Saudi Aramco’s initial public offering (IPO) on the Riyadh’s stock market, in Riyadh, Saudi Arabia, December 11, 2019. Saudi Aramco | Reuters


Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, exactly, trading, ipo, listing, saudi, international, market, aramcos, aramco, oil, recordbreaking, price, shares, free, dhabi, analyst


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Aramco’s record-breaking IPO is ‘not exactly a free market price,’ analyst says

A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018. “It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul. In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a w


A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018.
“It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul.
In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a w
Aramco’s record-breaking IPO is ‘not exactly a free market price,’ analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, shares, trading, listing, aramcos, price, analyst, saudi, free, dhabi, ipo, oil, international, recordbreaking, aramco, market, exactly


Aramco's record-breaking IPO is 'not exactly a free market price,' analyst says

A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018. Christopher Pike | Bloomberg | Getty Images

ABU DHABI, United Arab Emirates ⁠— Saudi Arabia made history this week as it debuted its crown jewel, Saudi Aramco, for public trading on the kingdom’s stock exchange. Shares shot up to the maximum allowed for the world’s largest-ever IPO at its launch, surging 10% on Wednesday and again on Thursday to briefly hit a valuation of $2 trillion before paring gains. The listing of 1.5% of the kingdom’s state-run oil giant reached a $1.88 trillion market cap on its first day of trading, putting it well above that of Microsoft and Apple. The astronomic $2 trillion figure, long pursued by Saudi Crown Prince Mohammed bin Salman since he announced his idea of the float in 2016, defied the expectations — and the ridicule — of much of the global finance community. But weak international interest, suspicions of heavily government-influenced local demand and scrapped plans to book-build outside the Gulf region have raised the question of how genuinely successful the public listing really is ⁠— and whether it could perform similarly if tested in international markets. “It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul. “I think it was a managed sale with a lot of government involvement,” said Rutledge, who served as an economic advisor to three U.S. administrations and the government of Kuwait. “They managed creating the book of buyers, but they also determined how many shares were sold. And so with that, you’ve got both levers. You can make the market cap almost whatever you want at that level.”

In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a wide range of institutions reflects trust in our long-term strategy.” After shares began trading Wednesday, Aramco CEO Amin Nasser told CNBC that the initial pricing of 32 riyals per share ($8.53) “was agreed based on full analysis and evaluation” and that the IPO on the Tadawul is “a sign of how strong the stock exchange is.” Nasser noted that local demand for shares was five times oversubscribed and said the listing “embodies Vision 2030,” the agenda set out by the crown prince to diversify the Saudi economy. Still, market and regional analysts were quick to point out that the listing fell short of the crown prince’s grand vision, which initially targeted an international listing. The kingdom had to rely predominantly on local investors after canceling roadshows in London and New York due to paltry foreign investor interest.

“It’s a success on paper. They delivered on a complicated IPO, the largest in the world,” said Ayham Kamel, head of the Middle East and Africa practice at Eurasia Group. “But the key risk facing Mohammed bin Salman is that a small IPO does not really move the needle on his diversification program, even if readjusted as part of a new Vision 2030. He needs to sell more of the company and begin to attract foreign investors.” Saudi Arabia’s recently announced 2020 budget revealed a budget deficit increase to 6.4% of gross domestic product from 4.2% in 2019, as its economy feels the pain of fiscal tightening and lower oil prices. The International Monetary Fund says Saudi Arabia needs oil at $78 a barrel to balance its budget ⁠— a level not seen in five years, and far from the $58 to $63 range of the last few months. Several energy forecasters see oil reaching only $70 a barrel by the end of 2020.

Amin H. Nasser, President and CEO of Aramco, rings the bell during the official ceremony marking the debut of Saudi Aramco’s initial public offering (IPO) on the Riyadh’s stock market, in Riyadh, Saudi Arabia, December 11, 2019. Saudi Aramco | Reuters


Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, shares, trading, listing, aramcos, price, analyst, saudi, free, dhabi, ipo, oil, international, recordbreaking, aramco, market, exactly


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Cramer: Saudi Aramco’s IPO shows there’s appetite for equities in Saudi Arabia

Cramer: Saudi Aramco’s IPO shows there’s appetite for equities in Saudi ArabiaSaudi Aramco posted a strong public debut after raising a record $25.6 billion in its IPO. The “Squawk on the Street” crew discuss.


Cramer: Saudi Aramco’s IPO shows there’s appetite for equities in Saudi ArabiaSaudi Aramco posted a strong public debut after raising a record $25.6 billion in its IPO.
The “Squawk on the Street” crew discuss.
Cramer: Saudi Aramco’s IPO shows there’s appetite for equities in Saudi Arabia Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-11
Keywords: news, cnbc, companies, theres, strong, arabia, street, raising, squawk, appetite, aramcos, record, equities, public, saudi, cramer, ipo, shows


Cramer: Saudi Aramco's IPO shows there's appetite for equities in Saudi Arabia

Cramer: Saudi Aramco’s IPO shows there’s appetite for equities in Saudi Arabia

Saudi Aramco posted a strong public debut after raising a record $25.6 billion in its IPO. The “Squawk on the Street” crew discuss.


Company: cnbc, Activity: cnbc, Date: 2019-12-11
Keywords: news, cnbc, companies, theres, strong, arabia, street, raising, squawk, appetite, aramcos, record, equities, public, saudi, cramer, ipo, shows


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Saudi Aramco prices shares at the top of the range for record IPO, report says

An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia. DUBAI — Saudi Arabian Oil Company, or Saudi Aramco, has priced its shares at the top of its indicative range for its initial public offering (IPO), Reuters reported Thursday citing three sources familiar with the decision. The shares have been priced at 32 riyals ($8.53), with a formal announcement expected later on Thursday, according to the news agency. That 1% is equiva


An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia.
DUBAI — Saudi Arabian Oil Company, or Saudi Aramco, has priced its shares at the top of its indicative range for its initial public offering (IPO), Reuters reported Thursday citing three sources familiar with the decision.
The shares have been priced at 32 riyals ($8.53), with a formal announcement expected later on Thursday, according to the news agency.
That 1% is equiva
Saudi Aramco prices shares at the top of the range for record IPO, report says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: natasha turak
Keywords: news, cnbc, companies, ipo, prices, range, stock, oil, billion, record, saudi, aramcos, riyals, public, shares, priced, worlds, aramco, report


Saudi Aramco prices shares at the top of the range for record IPO, report says

An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia.

DUBAI — Saudi Arabian Oil Company, or Saudi Aramco, has priced its shares at the top of its indicative range for its initial public offering (IPO), Reuters reported Thursday citing three sources familiar with the decision.

The shares have been priced at 32 riyals ($8.53), with a formal announcement expected later on Thursday, according to the news agency. This means it is set to raise $25.6 billion and will likely beat Alibaba to be the world’s largest ever stock market flotation.

The long-awaited IPO of the world’s largest and most profitable company will list locally on the Tadawul, Saudi Arabia’s stock exchange, and forms the centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030 aimed at transforming the Saudi economy.

The pricing announcement will follow a-week long local roadshow around the Middle East that saw Aramco’s local listing oversubscribed by nearly three times, attracting offers worth 189.04 billion riyals ($50.4 billion), according to banks advising the listing. Institutional investors had between Nov. 17 and Dec. 4 to place their orders.

Aramco has said in the past that 0.5% of its listed shares would be available to individual retail buyers, while the remaining 1% would be for institutional investors. That 1% is equivalent to 2 billion shares. In the first two and a half weeks of Aramco’s bookbuilding period, it drew subscription orders for 5.9 billion shares.

Gulf allies in the United Arab Emirates and Kuwait have made substantial commitments to the Saudi project, with the Kuwait Investment Authority and Abu Dhabi reportedly investing up to $1 billion and $1.5 billion in the public offering, respectively, though they have not commented publicly on the matter.


Company: cnbc, Activity: cnbc, Date: 2019-12-05  Authors: natasha turak
Keywords: news, cnbc, companies, ipo, prices, range, stock, oil, billion, record, saudi, aramcos, riyals, public, shares, priced, worlds, aramco, report


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Saudi central bank says Aramco IPO not causing liquidity issues for banks

Signage of Saudi Aramco’s initial public offering (IPO) is seen during a news conference by the state oil company at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. Saudi Arabia’s central bank is monitoring banking indicators on a daily basis and is not seeing any impact on liquidity from oil giant Aramco’s initial public offering (IPO), its governor said on Sunday. Saudi Arabian Monetary Authority governor Ahmed al-Kholifey told Reuters on the sidelines of a conference th


Signage of Saudi Aramco’s initial public offering (IPO) is seen during a news conference by the state oil company at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019.
Saudi Arabia’s central bank is monitoring banking indicators on a daily basis and is not seeing any impact on liquidity from oil giant Aramco’s initial public offering (IPO), its governor said on Sunday.
Saudi Arabian Monetary Authority governor Ahmed al-Kholifey told Reuters on the sidelines of a conference th
Saudi central bank says Aramco IPO not causing liquidity issues for banks Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-24
Keywords: news, cnbc, companies, aramcos, liquidity, conference, initial, bank, aramco, issues, oil, banks, saudi, central, monitoring, causing, ipo, public, offering


Saudi central bank says Aramco IPO not causing liquidity issues for banks

Signage of Saudi Aramco’s initial public offering (IPO) is seen during a news conference by the state oil company at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019.

Saudi Arabia’s central bank is monitoring banking indicators on a daily basis and is not seeing any impact on liquidity from oil giant Aramco’s initial public offering (IPO), its governor said on Sunday.

Saudi Arabian Monetary Authority governor Ahmed al-Kholifey told Reuters on the sidelines of a conference that he had no concerns about liquidity due to the size of Aramco’s IPO.

“We are monitoring all indicators on a daily basis and if there is any squeeze on liquidity, definitely we’ll be injecting liquidity but so far … everything is assuring,” he said.


Company: cnbc, Activity: cnbc, Date: 2019-11-24
Keywords: news, cnbc, companies, aramcos, liquidity, conference, initial, bank, aramco, issues, oil, banks, saudi, central, monitoring, causing, ipo, public, offering


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Saudi Aramco’s IPO is set to value the oil giant at up to $1.7 trillion

Amin H. Nasser, president and CEO of Saudi Aramco, speaks during a news conference at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. Saudi Aramco said in a press statement Sunday morning that it’s hoping to sell a 1.5% stake in the company, or about 3 billion shares. The figure implies that the oil giant is worth between $1.6 trillion to $1.7 trillion. The oil giant has delayed the IPO — originally scheduled for 2018 — multiple times, reportedly over Saudi concerns about


Amin H. Nasser, president and CEO of Saudi Aramco, speaks during a news conference at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019.
Saudi Aramco said in a press statement Sunday morning that it’s hoping to sell a 1.5% stake in the company, or about 3 billion shares.
The figure implies that the oil giant is worth between $1.6 trillion to $1.7 trillion.
The oil giant has delayed the IPO — originally scheduled for 2018 — multiple times, reportedly over Saudi concerns about
Saudi Aramco’s IPO is set to value the oil giant at up to $1.7 trillion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-17  Authors: matt clinch
Keywords: news, cnbc, companies, value, oil, riyals, saudi, aramcos, ipo, company, giant, shares, trillion, billion, set, public, range


Saudi Aramco's IPO is set to value the oil giant at up to $1.7 trillion

Amin H. Nasser, president and CEO of Saudi Aramco, speaks during a news conference at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. Hamad Mohammed | Reuters

Saudi Arabia’s state oil giant could be valued at up to $1.7 trillion, according to a price range announced Sunday for its upcoming listing, less than the $2 trillion figure the kingdom’s crown prince had previously targeted. Saudi Aramco said in a press statement Sunday morning that it’s hoping to sell a 1.5% stake in the company, or about 3 billion shares. The indicative price range for the shares is 30 Saudi riyals ($8.00) to 32 riyals, valuing the initial public offering (IPO) up to as much as 96 billion riyals ($25.60 billion) — at the top end of the range, according to Reuters. The figure implies that the oil giant is worth between $1.6 trillion to $1.7 trillion. The IPO next month could beat the record $25 billion raised by China’s e-commerce firm Alibaba when it debuted in New York in 2014.

Aramco’s listing is due in December and the company said last weekend that it will sell up to 0.5% of its shares to individual investors. Speculation and delayed announcements on the public listing of the world’s most profitable company have riveted investors and market watchers since plans for the float were first disclosed three years ago. The oil giant has delayed the IPO — originally scheduled for 2018 — multiple times, reportedly over Saudi concerns about public scrutiny over its finances and because of the complexity of its corporate structure. Analysts’ valuations of the company have varied from $1.2 trillion to $2.3 trillion. In comparison, Aramco’s closest U.S. rival, Exxon Mobil, has a market cap of nearly $300 billion and Chevron is valued at about $229 billion. When the IPO was first flagged in 2016 by the now-Crown Prince Mohammed bin Salman, he said then that he believed the company was worth around $2 trillion.


Company: cnbc, Activity: cnbc, Date: 2019-11-17  Authors: matt clinch
Keywords: news, cnbc, companies, value, oil, riyals, saudi, aramcos, ipo, company, giant, shares, trillion, billion, set, public, range


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4 reasons why analysts are cautious of Saudi Aramco’s IPO

Aramco oil facility near al-Khurj area, just south of the Saudi capital Riyadh on Sept. 15, 2019. And they believe there are plenty of reasons why international investors should be wary. Meanwhile, analysts at Bernstein noted that it was hard to evaluate a company like Aramco, which it likened to a “monster oil” company. In addition, Parker said the valuation might also be a factor adding to international investors’ concerns. “International investors might say well perhaps I need a discount to w


Aramco oil facility near al-Khurj area, just south of the Saudi capital Riyadh on Sept. 15, 2019.
And they believe there are plenty of reasons why international investors should be wary.
Meanwhile, analysts at Bernstein noted that it was hard to evaluate a company like Aramco, which it likened to a “monster oil” company.
In addition, Parker said the valuation might also be a factor adding to international investors’ concerns.
“International investors might say well perhaps I need a discount to w
4 reasons why analysts are cautious of Saudi Aramco’s IPO Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-04  Authors: holly ellyatt
Keywords: news, cnbc, companies, weve, oil, going, investors, aramco, ipo, saudi, reasons, analysts, international, company, aramcos, cautious


4 reasons why analysts are cautious of Saudi Aramco's IPO

Aramco oil facility near al-Khurj area, just south of the Saudi capital Riyadh on Sept. 15, 2019. Fayez Nureldine | AFP | Getty Images

Saudi Aramco may have finally fired the starting pistol on its initial public offering (IPO), but some analysts still believe investors should think carefully before jumping on board. The company, the most profitable in the world, announced Sunday that it’s planning to list on its local stock market, the Tadawul, in December. But a lack of details on the listing, which eventually could be the largest on record, has left some analysts cold. And they believe there are plenty of reasons why international investors should be wary.

Lack of details

Aramco said Sunday that “the final offer price, number of shares to be sold and percentage of the shares to be sold will be determined at the end of the book-building period.” The company’s IPO prospectus will be released on November 9. As such, analysts were left speculating on the finer details of the offering, and these could make all the difference to investor interest, they said. “Yes, it’s (the IPO has) been confirmed but at this point in time they haven’t really given us a set timetable as to when the transaction is going to get under way or complete,” David Lennox, resources analyst at Fat Prophets, told CNBC Monday. Previous reports have suggested the kingdom will list 1% to 2% of Aramco on its local stock exchange, and then list another slice on an international exchange at a later date — with a total public sale of roughly 5% of the company. Exchanges in New York, London, Hong Kong and Tokyo have all been vying for the international listing. Lennox said the valuation could make all the difference to investors. “We’ve also not seen any form of valuation, (although) we’ve seen quite wide numbers from $1 trillion to $2 trillion. We think it’s about $1.4 trillion so you can take your pick,” he said. “The other factor we don’t know at the moment is just how much of it are they going to float? … So there are a lot of questions we’ve yet to really have answered before one can say we’re going to see this IPO go ahead,” he said.

Dividend

The IPO has been closely-anticipated in the last few years but has been delayed amid oil price volatility, valuation uncertainty, the location of the share listing and geopolitical events such the drone and missile attack in September. The public listing could be the world’s largest, and if it achieves a valuation of $1.5 trillion Saudi Aramco would far exceed the market capitalization of giants like Apple and Microsoft. The company said one of its priorities was delivering “sustainable and growing dividends through crude oil price cycles” and that “subject to the board’s discretion after consideration of a number of factors, the board intends to declare aggregate ordinary cash dividends of at least $75.0 billion with respect to calendar year 2020, in addition to any potential special dividends.” How far that dividend goes will be subject to the amount of shares the company decides to list. “We’ve got the dividend amount but we just don’t know the amount of shares,” Lennox said, noting that “if they issue a bucket load of shares then that dividend amount is not going to go far.”

Meanwhile, analysts at Bernstein noted that it was hard to evaluate a company like Aramco, which it likened to a “monster oil” company. They cite the fact that Saudi Aramco is the most profitable company in the world — in 2018 its net income was $111 billion, five times bigger than Exxon or Shell. The analysts also note it has an oil reserve life of 52 years and its reserves are the cheapest to extract. “What’s fair value for a company with access to 201 billion barrels of proven oil reserves, produces 1 in every 8 global oil barrels, is instrumental in supporting oil prices and owns the world’s 4th largest integrated Downstream system pointing at Asia? While we’re used to valuing Big Oil, Aramco is Monster Oil, so this is literally the trillion-dollar question,” Bernstein Senior Analysts Oswald Clint and Neil Beveridge said in a note Monday.

Geopolitics

Geopolitical factors, like Saudi Arabia’s tense relationship with regional rival Iran, could also dampen investor sentiment. “If you look at it from the perspective of international investors, there are obviously concerns,” Bob Parker, investment committee member at Quilvest Wealth Management, told CNBC’s “Squawk Box Europe” Monday. “Do you want to invest in a region where the relationship with Iran is fraught?,” he asked. “We’ve also had infrastructure risk related to (the drone and missile attack) a few months ago and a large part of Saudi Aramco infrastructure being damaged.”

In addition, Parker said the valuation might also be a factor adding to international investors’ concerns. “International investors might say well perhaps I need a discount to warrant my investment in Saudi Aramco … But that discount doesn’t seem to be there,” he said. Parker added that he also believed oil prices were going to be subject to downward pressure. “All of those factors I think means that this is going to be a difficult IPO,” he warned.

Oil prices


Company: cnbc, Activity: cnbc, Date: 2019-11-04  Authors: holly ellyatt
Keywords: news, cnbc, companies, weve, oil, going, investors, aramco, ipo, saudi, reasons, analysts, international, company, aramcos, cautious


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Saudi Arabia kick-starts IPO of world’s largest oil company

An employee walks past crude oil storage tanks at the Juaymah Tank Farm in Saudi Aramco’s Ras Tanura oil refinery and oil terminal in Ras Tanura, Saudi Arabia, on Oct. 1, 2018. Saudi Arabia kick-started Aramco’s initial public offering (IPO) on Sunday as its market regulator approved the oil giant’s application to list on the domestic bourse and create the world’s most valuable listed firm. The CMA said its board “has issued its resolution approving the Saudi Arabian Oil Company (Saudi Aramco) .


An employee walks past crude oil storage tanks at the Juaymah Tank Farm in Saudi Aramco’s Ras Tanura oil refinery and oil terminal in Ras Tanura, Saudi Arabia, on Oct. 1, 2018.
Saudi Arabia kick-started Aramco’s initial public offering (IPO) on Sunday as its market regulator approved the oil giant’s application to list on the domestic bourse and create the world’s most valuable listed firm.
The CMA said its board “has issued its resolution approving the Saudi Arabian Oil Company (Saudi Aramco) .
Saudi Arabia kick-starts IPO of world’s largest oil company Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-03  Authors: weizhen tan
Keywords: news, cnbc, companies, ipo, aramcos, aramco, worlds, kickstarts, arabia, told, saudi, tanura, oil, largest, company


Saudi Arabia kick-starts IPO of world's largest oil company

An employee walks past crude oil storage tanks at the Juaymah Tank Farm in Saudi Aramco’s Ras Tanura oil refinery and oil terminal in Ras Tanura, Saudi Arabia, on Oct. 1, 2018.

Saudi Arabia kick-started Aramco’s initial public offering (IPO) on Sunday as its market regulator approved the oil giant’s application to list on the domestic bourse and create the world’s most valuable listed firm.

A statement from the Capital Market Authority (CMA) did not give a time frame or say how much Aramco would sell, but sources have told Reuters the oil company could offer 1% to 2% of its shares on the local bourse, raising as much $20 billion to $40 billion.

Confirmation of the share sale in Saudi Arabian Oil Co., or Aramco, as the oil giant is usually known, comes about seven weeks after crippling attacks on its oil facilities, underlining Saudi Arabia’s determination to push on with the listing regardless.

The IPO of the world’s most profitable company is designed to turbo charge Crown Prince Mohammed bin Salman’s economic reform agenda by raising billions to diversify the kingdom, whose dependency on oil was highlighted by the production impact of the Sept. 14 attacks.

The CMA said its board “has issued its resolution approving the Saudi Arabian Oil Company (Saudi Aramco) … application for the registration and offering of part of its shares.”

The authority said approval would remain valid for six months.

Saudi Aramco will release the IPO prospectus on Nov. 10, Saudi-owned news channel Al-Arabiya said on Sunday, citing sources.

The listing announcement had been expected on Oct. 20 but was delayed after advisers said they needed more time to lock in cornerstone investors, three sources told Reuters.

To help get the deal done, Saudi Arabia is relying on easy credit for retail investors and hefty contributions from rich locals.

Prince Mohammed gave the green light on Friday for the IPO to go ahead, Reuters reported, citing sources.

Although he put a $2 trillion valuation on the company in early 2016, bankers and company insiders say Aramco’s value is closer to $1.5 trillion.

A growing movement to fight climate change and embrace new “green” technologies have put some fund managers, particularly in Europe and the United States, off the oil and gas sector.


Company: cnbc, Activity: cnbc, Date: 2019-11-03  Authors: weizhen tan
Keywords: news, cnbc, companies, ipo, aramcos, aramco, worlds, kickstarts, arabia, told, saudi, tanura, oil, largest, company


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Saudi Arabia’s Sabic plots a course for its future after Aramco’s planned IPO

“I am very optimistic,” Sabic Vice Chairman and CEO, Yousef Al Benyan, told a small roundtable of reporters at its headquarters in Riyadh on Sunday. “We don’t use the word integration,” Al Benyan said. “There are some misconceptions around the relationship in the future between Aramco and Sabic, but Sabic will remain a publicly-listed company,” he added. “I’m not worried about how Sabic is going to operate in the future,” Al Benyan added. The successful IPO of Aramco is seen as critical for Saud


“I am very optimistic,” Sabic Vice Chairman and CEO, Yousef Al Benyan, told a small roundtable of reporters at its headquarters in Riyadh on Sunday.
“We don’t use the word integration,” Al Benyan said.
“There are some misconceptions around the relationship in the future between Aramco and Sabic, but Sabic will remain a publicly-listed company,” he added.
“I’m not worried about how Sabic is going to operate in the future,” Al Benyan added.
The successful IPO of Aramco is seen as critical for Saud
Saudi Arabia’s Sabic plots a course for its future after Aramco’s planned IPO Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-28  Authors: dan murphy
Keywords: news, cnbc, companies, arabias, aramco, benyan, future, aramcos, ipo, kingdom, going, saudi, course, company, planned, sabic, plots


Saudi Arabia's Sabic plots a course for its future after Aramco's planned IPO

The Kingdom Tower, operated by Kingdom Holding, left, stands alongside the King Fahd highway, illuminated by the light trails of passing traffic, in Riyadh, Saudi Arabia, on Saturday, Jan. 9, 2016. Waseem Obaidi | Bloomberg | Getty Images

RIYADH — A high-level committee of Saudi Basic Industry Corporation (Sabic) executives are working on a post-Aramco IPO (initial public offering) strategy, including possible acquisitions, as the kingdom puts the final touches on the critical stock market offering. “I am very optimistic,” Sabic Vice Chairman and CEO, Yousef Al Benyan, told a small roundtable of reporters at its headquarters in Riyadh on Sunday. “If Aramco becomes 70% shareholder of the company and Sabic becomes the chemical arm of Aramco and the kingdom, this is going to push the company out in front,” he said. Sabic, the world’s third-largest chemical company with 33,000 employees in 50 countries, is looking to boost its own transparency, find synergies and drive growth after the Aramco IPO. In a series of closed room briefings at its headquarters, senior executives — including the firm’s corporate finance and petrochemicals boss — worked to clarify the future structure for the business once Aramco goes live. “We don’t use the word integration,” Al Benyan said. “There are some misconceptions around the relationship in the future between Aramco and Sabic, but Sabic will remain a publicly-listed company,” he added.

Antitrust review

Aramco agreed to buy a 70% stake in Sabic from Saudi Arabia’s Public Investment Fund (PIF) in March for $69.1 billion, providing a major cash injection for the PIF and a potential boost for Aramco’s downstream operations if the two were to combine. The share purchase remains subject to various closing conditions and regulatory approvals. The deal between the three entities was seen as moving money from one pocket of the Saudi state to another, given the government will remain their ultimate owner.

“We will be negotiating with Aramco on which of their assets will be acquired by Sabic,” Al Benyan said, suggesting instead there will be a clear division between the chemical operations of Saudi Arabia’s two largest companies. “We have not been able to identify them at this point because we have no access to them, and we are going through the antitrust right now,” he added. “As soon as the antitrust is completed, we need to sit down together and create a synergy committee that is going to drive the value between both companies,” he said, saying the review should be completed no later than the first quarter of 2020. “I’m not worried about how Sabic is going to operate in the future,” Al Benyan added. The successful IPO of Aramco is seen as critical for Saudi Arabia’s economy and society. However, progress has slowed in recent months with international investors questioning its touted $2 trillion valuation.

Africa investment


Company: cnbc, Activity: cnbc, Date: 2019-10-28  Authors: dan murphy
Keywords: news, cnbc, companies, arabias, aramco, benyan, future, aramcos, ipo, kingdom, going, saudi, course, company, planned, sabic, plots


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Saudi Aramco’s first-half net income falls 12% to $47 billion

An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia. Saudi Aramco, the world’s top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier. By comparison, Apple Inc, the world’s most profitable listed company, made $31.5 billion in the first six months of its financial year. In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the


An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia. Saudi Aramco, the world’s top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier. By comparison, Apple Inc, the world’s most profitable listed company, made $31.5 billion in the first six months of its financial year. In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the
Saudi Aramco’s first-half net income falls 12% to $47 billion Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, saudi, income, company, 47, worlds, billion, 12, nasser, net, aramcos, firsthalf, aramco, crude, falls, oil


Saudi Aramco's first-half net income falls 12% to $47 billion

An Aramco oil tank is seen at the Production facility at Saudi Aramco’s Shaybah oilfield in the Empty Quarter, Saudi Arabia.

Saudi Aramco, the world’s top oil producer, reported first-half net income of $46.9 billion on Monday, down from $53.02 billion a year earlier.

By comparison, Apple Inc, the world’s most profitable listed company, made $31.5 billion in the first six months of its financial year.

Aramco said total revenues including other income related to sales were at $163.88 billion in the first half of this year, down from $167.68 billion a year earlier, on lower oil prices and reduced production.

In its earnings report, Aramco partly attributed the decline in net income to a 4% fall in the average realized price of crude oil compared to the same period in 2018, from $69 to $66 per barrel.

Aramco President and CEO Amin Nasser said the company had continued to deliver on its “downstream growth strategy” through acquisitions both domestically and in international markets.

“These acquisitions are expected to enhance dedicated crude placement, increase refining and chemicals capacity, capture value from integration and diversify our operations,” Nasser said.


Company: cnbc, Activity: cnbc, Date: 2019-08-12  Authors: reuters with cnbccom
Keywords: news, cnbc, companies, saudi, income, company, 47, worlds, billion, 12, nasser, net, aramcos, firsthalf, aramco, crude, falls, oil


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