Aramco IPO Will Lean on Saudis and China as Fund Managers Balk - Bloomberg:
One week into Saudi Aramco’s mammoth initial public offering and the likely shape of the deal is already emerging. Investors with political or strategic reasons to buy the stock are in, while many international money managers seem ready to pass -- at least until Crown Prince Mohammed bin Salman decides to rein in his valuation ambitions still further.
The richest Saudis are being pressed to commit large sums to the IPO. Among those considering sizable purchases are the Olayan family and Prince Alwaleed bin Talal, the billionaire investor who was held for several weeks in Riyadh’s Ritz-Carlton Hotel during the 2017 crackdown on corruption.
China, the world’s largest oil importer, may commit as much as $10 billion through sovereign wealth funds and other state-owned enterprises, according to people familiar with the situation. An investment would be a hedge against rising oil prices and chime with the objectives of Beijing’s ambitious Belt and Road program.
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