Aramco: Joke of an IPO

by ScotchBrandyBourbon

 

They are pricing it at $1.7 trillion. But this is a super inflated number.

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  1. They are only selling 1.5% of the company. If they had to sell 30-40% of the company the price would be much lower.
  2. They couldn’t even get a decent offer from USA/Euro investors. This IPO is 100% domestic/regional.
  3. There were so few buyers that Saudi banks offered citizens cheap credit to bid for shares.

Looking at all these factors Armaco is probably worth less than $1 trillion if it was sold on the open market and a big chunk of the shares had to be sold.

 

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.

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