Saudi ARAMCO is one of the largest Saudi Arabian Oil and Natural Gas company is launching its IPO (Initial Public Offers) and will start taking bidding from investors to purchase ARAMCO stocks starting November 2019.
This announcement was made last Saturday and ARAMCO will release it IPO prospectus soon. The Final pric eof ARAMCO sahre will be decided after 5th of December 2019 after the offerings and subscriptions get closed.
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ARAMCO IPO is expected to be one of the worlds biggest IPO and is expected to raise $100 billion with a $2 trillion valuation.
Things to know about Saudi ARAMCO IPO and why to invest in it.
– Saudi ARAMCO is a 10% contributor to worlds Oil supply
– A portion of ARAMCO shared will be held by Saudi Government
– ARAMCO IPO for individual subscribers begins on 17th November and and closes on 28th November.
– ARAMCO’s net profit last year – $111 Billion
– 0.5% of the shares will be sold to individual retail investors and some percentage of shares for larger investors (which is not disclosed yet)
– Saudi Aramco’s prospectus also highlighted risks including the potential for “terrorist” attacks and the possibility of antitrust legislation.
– ARAMCO IPO will also cross the Chinese biggest retails Alibaba’s
– Aramco investors will face oil-price volatility and geopolitical risks.
– Investors will have no influence with state as majority shareholder.
– Saudi government could be tempted to dip into Aramco’s profits.
– Aramco will face pressure to lift dividend payout to entice investors.
– Government hopes to sell 50% of issue to international investors