Aramco CEO Says Post-IPO Tax Burden Will Link to Oil Prices - Bloomberg:
"Saudi Aramco’s chief executive said the most important tax paid by the state-owned energy giant will fluctuate with the price of oil, a significant move ahead of the company’s initial public offering this year.
Adjusting the 20 percent royalty on oil revenue Aramco currently pays would help the kingdom to raise extra money if prices climb. While not unusual in commodities industries, the move may not prove popular with potential investors. It would protect them from downturns, but also reduce their gains at times of rising prices.
The Aramco IPO would be one of the biggest events on financial markets this year, so any change affecting the deal is of significant interest to global investors. Saudi officials said they hope to raise a record $100 billion, valuing the company at more than $2 trillion and dwarfing the $25 billion raised by Chinese Internet retailer Alibaba Group Holding Ltd. in 2014."
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