One to sit back and watch with interest. The question should be "why now?". The Saudis don't have an industry more strategically important than oil.
Same as WeWork, offload the risk to the public now that the major profits have been taken.
Saudi Aramco: The message from the world’s biggest and wildest IPO
21–30 of 63 posts
Re: Saudi Aramco: The message from the world’s biggest and wildest IPO
#222 trillion market cap?
Corrupt russian oil and gas companies trade at 4x earnings. At that valuation with annual earnings of $90 billion aramco should be valued at more like $360 billion.
Sorry, but that's the penalty you pay for being a corrupt journalist murdering autocrat.
Re: Saudi Aramco: The message from the world’s biggest and wildest IPO
#23One to sit back and watch with interest. The question should be "why now?". The Saudis don't have an industry more strategically important than oil.
Probably because in 10-15 years time an oil company won't be able raise any significant amount of money. Major investors have already started divesting from fossil fuels.
If they're smart, the money will be invested in creating the post-oil economy SA will need. They could keep on being an important energy exporter, sunlight is very abundant there after all.
Re: Saudi Aramco: The message from the world’s biggest and wildest IPO
#24"Intention to float IPO" (official document): https://www.saudiaramco.com/-/media/images/investors/aramco-... If you are wondering about investing.. Offer Highlights: Listing of the Shares will be on the Main Market of Tadawul The Offering is being made available to qualifying Individual Investors and Institutional Investors. The Offering shall be restricted to the following two groups of investors: Tranche (A) (Inst…
Why does Tranche B specifically mention Saudi female divorcees? Is the implication that married and single women aren't allowed to purchase shares, or am I misunderstanding?
It seems like there's a presumption that a Saudi woman who marries a foreigner will take his citizenship. Eg in [1]:
> 17 - Considering Articles (132 – 133) of Legal Civil Procedures System, the Saudi female does not lose her Saudi Citizenship if she married a foreigner, unless she is allowed to leave the Kingdom with her husband, and joined her husband's nationality according to statutory laws of this nationality.
> 18 - Saudi wife of a foreigner has the right to recover her Saudi Citizenship in case of divorce and returning to the Kingdom.
So, although it's explicitly not the case that a Saudi woman automatically loses Saudi citizenship on marriage, reading between the lines a bit, it seems that it's common that she does in practice, because she takes her husband's nationality. Perhaps it's common for the citizenship rules in other Arab countries to require that? So if a Saudi woman marries a Emirati man, maybe Emirati law requires that she becomes an Emirati citizen, so she stops being a Saudi citizen. This is speculation, though.
Re: Saudi Aramco: The message from the world’s biggest and wildest IPO
#25Earlier quoted context omitted.
Like with sovereign bond defaulters or countries who have nationalised US owned assets: they would get sued in US courts. US courts would freeze and/or confiscate Saudi assets. Saudi Princes might find yatchs, private planes and super cars start getting impounded wherever lawsuits can be filed.
The Saudis engaged in a widely-publicised example of state-sanctioned murder of a US journalist last year with limited repercussions. I’d think twice before trusting in the rule of law where our politically expedient friends are concerned.
Right, but in the US, there's a big difference between murdering someone and taking investors' money.
Re: Saudi Aramco: The message from the world’s biggest and wildest IPO
#26Earlier quoted context omitted.
The Saudis engaged in a widely-publicised example of state-sanctioned murder of a US journalist last year with limited repercussions. I’d think twice before trusting in the rule of law where our politically expedient friends are concerned.
Khashoggi wasn't a "US journalist" or a US citizen. He was a Saudi citizen, and he was killed on foreign soil. As despicable as the events were, let's not lose track of the facts here. WaPo calls him a "Saudi journalist and author": https://www.washingtonpost.com/people/jamal-khashoggi/ If you're appalled by this murder, do recall that our lord and savior Barack Obama droned US citizens he didn't like without trial i…
It looks like the actual target of the drone was the Egyptian al-Banna. In any case, IMHO either you are able to target active terrorists without judicial overview or you're not, whatever their citizenship. I'm a Brit, so no skin in that particular issue, but for the record I have no problem with British jihadists that joined ISIS getting bombed. They made their choice.
Re: Saudi Aramco: The message from the world’s biggest and wildest IPO
#27The original oil well is probably the ultimate example of how the best ideas often sound completely insane. The basic story is that the guy pitched a bunch of VCs in New Haven in the 1850s and got laughed out of the room for saying that he thought the stuff inside whales was buried under a mountain in Pennsylvania.
Maybe they were (bio)chemists at heart? That stuff under a mountain is mineral oil: more useful than edible oils in many ways but it has to go under the frying pan, not in it.
Re: Saudi Aramco: The message from the world’s biggest and wildest IPO
#28One to sit back and watch with interest. The question should be "why now?". The Saudis don't have an industry more strategically important than oil.
Saudi Arabia is economic time bomb. They want to sell because they need the money.
Saudis have been running budget deficits 4 - 5 percent of the GDP year after year. Deficit might hit 7 percent this year. Saudi Aramco is a profit machine but the population is now over 30 million and the country if full of unemployment and bullshit jobs.
Cutting spending may not be politically possible because it's buying peace. Official unemployment rate is less than 15% but it's estimated that only less than half of working-age Saudis hold jobs or actively seek work. Foreign exchange funds provide buffers but their net foreign assets are gradually eaten away if oil price don't recover.
Re: Saudi Aramco: The message from the world’s biggest and wildest IPO
#29If you want to read a more thorough and vivid version of all the history mentioned, and so much more, I recommend The Prize: The Epic Quest for Oil, Money, and Power by Daniel Yergin. One of the most enjoyable non-fiction books I’ve ever read.
Re: Saudi Aramco: The message from the world’s biggest and wildest IPO
#30Earlier quoted context omitted.
Why does Tranche B specifically mention Saudi female divorcees? Is the implication that married and single women aren't allowed to purchase shares, or am I misunderstanding?
Yes, that is the implication. Saudi Arabia oppresses women.
Who knew feminism and climate awareness would tie up so nicely in the end? More renewables -> less oil -> less money for Saudi arabia