Posted on 11/04/2019 7:13:15 AM PST by C19fan
Saudi Arabia is moving forward with an initial public offering of its huge state oil producer that could shatter records and give investors the chance to own a piece of the world's most profitable company.
Following approval from the country's regulators, Saudi Aramco on Sunday formally announced its intention to float shares on the Tadawul exchange in Riyadh. Aramco executives will now embark on an international roadshow to court investors, and a prospectus outlining the company's financial details is expected later this month.
(Excerpt) Read more at cnn.com ...
The first question I have is why are they going IPO...
I remember hearing something in the grapevine about 20 years ago. Saudi Arabia press the US for guarantees that we would help them if world went to an alternate fuel causing Oil prices to drop.
I wonder if we have reach that point (oil prices) because of alternate fuels and oil production in the US?
Is this causing Saudi Arabia to worry and diversify their portfolio?
MBS is spending big money in an attempt to diversify SAs economy. Getting access to more cash for his vision by selling a small part of Aramco is part of his plan.
That’s what I’ve read elsewhere as well. Diversifying the SA economy is a big long term goal of his. He’s looking at SA beyond oil.
I don’t really know the story on Qatar except their Head of State back in the day took a risk and diversified into Gas. Now they are all rich...
and trying to buy their way into everywhere..including using Ilhan Omar
more inclined to believe that their wells are going dry and they are trying to milk the american investors while they can...
That would be my take.
That it is the world’s most profitable company comes from its cost to produce oil, which is under $5 and may be under $3.
For this, I can’t fault them. US markets are at an all time high; energy is lowish, and the world is awash in zero-interest money. All in all it’s probably a pretty smart move and well timed.
If the Saudis are selling interest in Aramco, that must means they’ve peaked on their reserves. Selling stock to suckers. Are they going to promise both accountability and transparency? I doubt it.
Or could be they are trying to give folks in other nations a vested interest in buying their oil?
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