Saudi Arabia Needs Lots of Private Oil Money - Bloomberg Gadfly

Saudi Arabia Needs Lots of Private Oil Money - Bloomberg Gadfly:

"Saudi Arabia is considering a staggered process for the colossal initial public offering of its state oil company, according to an FT report. That could potentially involve a local IPO of Saudi Aramco in Riyadh alongside a private placement to cornerstone investors, with an international sale following later.ARAMCO MOOTED VALUE$2 trillionWhatever structure Aramco opts for, the sheer size of the offering means shareholders taking hefty stakes would have to be an essential part of its privatization. This was always going to be an IPO roadshow taking in the world's richest individuals and institutions.Saudi Arabia is considering selling about 5 percent of the company. At the mooted -- but contested -- $2 trillion valuation, that would imply a stock offering of at least $100 billion. This is about half of the natural demand for global IPOs based on recent figures. In the past 12 months, $206 billion of stock was sold in new issues, including $95 billion of new stock sales in Asia, $52 billion in Europe and $43 billion in the U.S, Bloomberg data show."



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