• About
  • Contact
Saturday, April 17, 2021
Next Big Brand
  • .
  • News
  • Internet
  • Startup
  • OTT
  • Industries
  • FMCG
  • Cryptocurrency
  • Retail
  • Tech
  • Case Study
  • Interview
No Result
View All Result
Next Big Brand
Home Industries

Saudi Aramco launches IPO with Crown Prince Offer Shares Of Oil Giant

Pritish raj by Pritish raj
November 4, 2019
in Industries, News
3 min read
0
Saudi Aramco IPO- Next Big Brand

Saudi Aramco- Next Big Brand

Share on FacebookShare on Twitter

Since Crown Prince Mohammed bin Salman eventually decided to offer shares in the world’s largest oil producer, Saudi Arabia is taking all the steps to ensure the success of Aramco’s initial public offering.

For the third time, the Kingdom has cut corporate taxes, revealed incentives for investors not to sell, and is considering further boosting dividends. Yet the Saudi government has admitted that the business is probably not worth the valuations of $2 trillion that Prince Mohammed has long advocated.

Aramco published a so-called intention to float on Sunday more than three years after the IPO was first mooted, the most dramatic change in the Saudi oil industry since the company was nationalized.

The Saudi Aramco IPO is a pillar of the 2030 Vision program of Prince Mohammed to prepare the Saudi economy for the post-oil period.

According to people familiar with the issue, Saudi Arabia plans to valuate between $1.6 trillion and $1.8 trillion. Bank analysts working on the transaction gave wildly divergent estimates: Goldman Sachs Group Inc. said Aramco was worth between $1.6 trillion and $2.3 trillion to investors. Bank of America, another top bank on the deal, had only $1.2 trillion at the bottom of its range. BNP gave a $1.42 trillion forecast.

With Saudi Aramco employing more than 20 banks at its IPO, investors have few options for research that is genuinely independent. Nevertheless, some outfits have begun to publish their estimates. For example, Sanford C. Bernstein & Co. said the fair value ranges from $1.2 trillion to $1.5 trillion, well below the projections made by the banks working on the IPO.

“This is the right time for us,” Chairman Yasir Al-Rumayyan said on Sunday at a news conference at Aramco’s headquarters in Dhahran’s eastern city. Aramco’s $111 billion net income last year made it the most profitable of any company–more than Apple Inc., Google’s parent Alphabet Inc., and Exxon Mobil Corp. combined.

Most bank valuations are based on oil prices that remain above $60 a barrel and assume that Aramco can raise oil production by 2021. Almost every bank assumes that in order to cover spending and dividend payments, Aramco will have to take on debt this year and next year. JPMorgan Chase & Co. published a 118-page report without offering an assessment but called Aramco the first “mega-major” oil company.

In order to boost investor appetite, Aramco said it would pay an income tax rate of 20 percent on its domestic downstream business starting next year, compared to current taxes of between 50 percent and 80 percent.

In addition to the changes in royalty payments already announced, the government also exempted condensate— a light oil produced in conjunction with natural gas— from the tax until 2033. These measures would have boosted free cash flow in the first six months of this year by $4.5 billion, the company said in the intention of floating documents.

Saudi retail investors will be eligible for one share per 10 allocated shares if they hold the shares continuously for 180 days from the first trading and listing date, Aramco said.

Saudi Aramco- Next Big Brand
Saudi Aramco Is the most profitable company on earth.

Aramco reported a net income of $68 billion and in the first nine months of the year generated $244 billion in revenue and revenue related to sales, he said in a statement. Next year, it predicts capital spending from $35 billion to $40 billion, rising to $40 billion in 2021 to $45 billion.

A position in the agreement has been hotly contested by global banks. With the biggest positions going to firms like Citigroup Inc., Goldman Sachs, and JPMorgan Chase, more than 20 have been appointed. To make the deal, bankers will need heavy contributions from the richest families in the kingdom, many of whom may have been targeted during a declared crackdown on corruption in 2017, when scores of wealthy Saudis were held in Riyadh Ritz-Carlton Hotel.

Aramco must also contend with the strengthening of the global climate change movement that has targeted the largest oil and gas companies in the world. Many fund managers are concerned that the shift away from the internal combustion engine — a technology that has driven a hundred years of steadily increasing demand — means oil consumption will peak in the next two decades.

Investors will also have to weigh up how to factor in rising geopolitical risks following attacks on Aramco’s crude-processing facilities in September that knocked out half of its output. The company said the production was quickly restored and no customer orders were missing, but the incident highlighted its vulnerability to regional military threats.

Previous Post

Government To Save ₹ 7,500 Crore From VRS Of 80k BSNL Employees

Next Post

Peter England- Story of India's Leading Apparel Brand

Pritish raj

Pritish raj

Pritish Raj is a content writer at Next Big Brand. Hailing from the diversified state of Bihar, he is an engineer by education who chooses the way of poetry, photography, and writing to kick off his career. Highly enthusiastic about brands and startups, he aims to be a travel content creator.

Related Posts

Pine Labs Acquires Fave in Deal Valued over $45 Million
Case Study

Pine Labs – Transforming the Digital Transaction Environment

April 17, 2021
Gupshup Raises $100 Million, Joins Unicorn Club
Case Study

Gupshup: Providing Secured Feature Rich Bot Platforms to its Clients

April 17, 2021
boAt Raises Rs 50 Crore from Qualcomm Ventures
Media

boAt Raises Rs 50 Crore from Qualcomm Ventures

April 16, 2021
60% of Indian CMOs to have budgets for influencer marketing in 2021:ClanConnect
Case Study

60% of Indian CMOs to have budgets for influencer marketing in 2021:ClanConnect

April 16, 2021
Sachin Bansal’s Chaitanya India Fin Credit Applies for Universal Bank License
Industries

Sachin Bansal’s Chaitanya India Fin Credit Applies for Universal Bank License

April 16, 2021
Vahdam India Recorded a 110% YoY Growth in FY21
Food

Vahdam India Recorded a 110% YoY Growth in FY21

April 15, 2021
Next Post
Peter England- Next Big Brand

Peter England- Story of India's Leading Apparel Brand

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

RECOMMENDED NEWS

PSSI Sends Condolences After Another Fan Dies in Football Violence

2 years ago
Shoppers Stop Employees- Next Big Brand

Shoppers Stop Lays Off 1,100 Employees & Shuts Down Few Stores

10 months ago
Smart TV- Next Big Brand

SmartPhone Brands Enter Smart TV Segments With New Age TVs

2 years ago
Uzabase Sells Quartz News Website To Co-founder & Editor-In-Chief

Uzabase Sells Quartz News Website To Co-founder & Editor-In-Chief

5 months ago

FOLLOW US

  • 33.7k Fans

BROWSE BY TOPICS

2018 League amazon Amazon Great Indian Sale Amazon Prime Apple Apple Inc Automobile Industry Balinese Culture Bali United Budget Travel Champions League Chopper Bike Doctor Terawan facebook Facebook app future group hotstar Indian OTT Platforms Indian Smartphone Market Istana Negara Jio Market Stories Maruti Suzuki National Exam Netflix Netflix India Netflix Originals oppo OTT OYO Realme Reliance Industries Limited Reliance Jio RIL Samsung Tata Motors Tiktok TikTok India TikTok Videos Visit Bali Vivo whatsapp Xiaomi Xiaomi India YouTube
Next Big Brand

We Talk About Brands

Follow us on social media:

Recent News

  • Pine Labs – Transforming the Digital Transaction Environment
  • Gupshup: Providing Secured Feature Rich Bot Platforms to its Clients
  • boAt Raises Rs 50 Crore from Qualcomm Ventures

Instagram

Follow Me!

Latest News

Pine Labs Acquires Fave in Deal Valued over $45 Million

Pine Labs – Transforming the Digital Transaction Environment

April 17, 2021
Gupshup Raises $100 Million, Joins Unicorn Club

Gupshup: Providing Secured Feature Rich Bot Platforms to its Clients

April 17, 2021
  • About Us
  • Privacy Policy
  • Terms and Conditions
  • Disclaimer
  • DMCA Policy
  • Our Team
  • Contact Us
  • Sitemap

© 2019 NBB. All Rights Reserved.

No Result
View All Result
  • .
  • News
  • Internet
  • Startup
  • OTT
  • Industries
  • FMCG
  • Cryptocurrency
  • Retail
  • Tech
  • Case Study
  • Interview

© 2019 NBB. All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.