Saudi Aramco Gets Greenlight on IPO
Posted on 11/04/2019
The initial public offering of Saudi Aramco is chugging forward as the world’s largest initial public offering (IPO). The Saudi Capital Market Authority approved of Saudi Aramco’s offering, in which shares could be starting to trade by December 2019. The approval from the regulator is valid for six months.
Saudi Crown Prince Mohammed bin Salman widely touted the US$ 2 trillion valuation of Saudi Aramco, since whispers of the IPO came on the scene. The controversial economic projection set the bar for valuing the energy giant. However, with the IPO of Saudi Aramco, banks are pitching a target between US$ 1.6 trillion and US$ 1.8 trillion. A number of investment banks are valuing the price of oil per barrel as a major input to the valuation of Saudi Aramco.
Furthermore, Saudi Aramco is possibly willing to augment the company’s next year dividend by a further US$ 5 billion to entice investors.
