Aramco’s IPO Comes as Saudi Markets Head for Even Rougher Waters - Bloomberg:
Anyone buying into Saudi Aramco’s initial public offering in anticipation of a quick rebound in the country’s stock market may be in for a disappointment.
Crown Prince Mohammed bin Salman’s desire to get a $2 trillion valuation for the energy giant comes as analysts slash their earnings-per-share estimates for Saudi companies for the coming 12 months. They have cut them by 13% this year, according to data compiled by Bloomberg.
The Tadawul All Share Index entered a bear market on Tuesday, having fallen 20% from a four-year peak in May. It pared losses in the following two days, but is still down 14% since the end of June, the worst performance globally after Argentina.
Anyone buying into Saudi Aramco’s initial public offering in anticipation of a quick rebound in the country’s stock market may be in for a disappointment.
Crown Prince Mohammed bin Salman’s desire to get a $2 trillion valuation for the energy giant comes as analysts slash their earnings-per-share estimates for Saudi companies for the coming 12 months. They have cut them by 13% this year, according to data compiled by Bloomberg.
The Tadawul All Share Index entered a bear market on Tuesday, having fallen 20% from a four-year peak in May. It pared losses in the following two days, but is still down 14% since the end of June, the worst performance globally after Argentina.
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