Published 02:06 IST, October 30th 2019
Saudi Aramco IPO: Oil giant to sell 3% of its shares to public
The Saudi Aramco, the oil giant, owned by the state will soon announce the opening of its stock for the public. The shares are estimated to sell at lower price
- World News
- 3 min read
The Saudi Aramco, the oil giant, owned by the State will reportedly soon announce the opening of its stock for the public. But the according to the economic analysts the sale of the shares will fall short of the expected value.
Aramco IPO shares valued at a lesser price
Validating Saudi Arabia’s ambitious, shares of Aramco were estimated at $2 trillion, making it the biggest public trade of all times. The valuation was announced by Mohammed bin Salman back in 2016. Even though the sale of stocks was surrounded by complication, Saudi’s Prince was hopeful for its commencement in 2018. Saudi Arabia is however expected to announce the sale of Aramco’s stocks but will be sold at a much lower value than expected. According to the international media, the company will sell off 3 per cent of its shares in the initial bidding. The government decided to do so after two oil-producing facilities of the company were temporarily shut down.
Amarco stocks will be the key attraction for the third annual Future Investment Initiative
Saudi Arabia’s third annual Future Investment Initiative will commence on October 29, organized by the government of Saudi Arabia in Riyadh for corporates and senior government officials. As per reports, the selling of Amarco stocks will be the key attraction for the conference. The investment bankers have told Prince Mohammed that according to the perspective of the investors the shares will be valued at $1.5 trillion. On the other hand, the stock exchanges in Hong Kong, New York, and London have asserted that according to the economic conditions of Saudi Arabia and following the present trend, Amarco is fated to sell its stocks at a much lesser value than estimated. Hence, Saudi Arabia will inevitably remain dependent on its oil resources.
The government remains in dilemma
The selling of the stocks has been postponed by the government of Saudi Arabia, several times. According to the international media, there was a delay when Aramco decided to buy the control of a Saudi petrochemical producer, and later the government postponed the public offerings of the oil company’s share which are yet to be announced. However, the dilemma still remains and the government can give second thoughts leading to further delay.
Updated 02:06 IST, October 30th 2019