Here’s What Investors Say Aramco Should Be Valued at: Survey - Bloomberg

Here’s What Investors Say Aramco Should Be Valued at: Survey - Bloomberg:

As Saudi Aramco prepares to unveil the price range for its long-awaited IPO on Sunday, an investor survey points to a maximum valuation for the oil giant of $1.5 trillion.

The poll of 24 money managers by Bloomberg News showed that more than 40% put the company’s fair range at $1.2 trillion to $1.5 trillion. That’s less than the figure of about $1.7 trillion Crown Prince Mohammed Bin Salman is said to be currently willing to accept, having reduced it from an original public target of $2 trillion.

Saudi Arabia is pulling out all the stops to ensure the IPO has as high as valuation at possible. It’s sought large commitments from rich Saudi families, many of whom had members held in the Riyadh’s Ritz-Carlton during 2017’s corruption crackdown. The sale will also be aggressively pitched to retail investors, who’ll be offered loans to finance purchases.