Tuesday, 5 November 2019

Aramco Analysts' $1.4 Trillion Spread Risks Pleasing Nobody - Bloomberg

Aramco Analysts' $1.4 Trillion Spread Risks Pleasing Nobody - Bloomberg:

Caught between a client seeking a $2 trillion valuation and skeptical foreign investors reluctant to pay anywhere near that amount, the banks working on Saudi Aramco’s initial public offering went for compromise: tell both sides they’re right.

The result risks pleasing nobody, however.

Aramco appointed more than 20 banks to advise on what could be world’s largest share sale, and their analysts -- who are supposed to work independently of the investment bankers advising Aramco -- put together reports on the company’s financial performance and outlook before the share sale kicked off. Consensus is in short supply.

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