This Is Where Saudi Arabia Gets Its Oil - Bloomberg:
Saudi Arabia is home to the world’s biggest crude exporter, pumps from the largest oil field on the planet, and holds the keys to one of the most abundant reserves of black gold globally. Now Saudi Aramco is kicking off what could be the world's largest share sale.
The Saudi government-owned company officially started the process for its initial public offering with shares to be listed on the stock exchange in Riyadh as soon as early December, Chairman Yasir Al-Rumayyan said. Crown Prince Mohammed Bin Salman first floated the plan for the IPO in 2016 saying the company was worth some $2 trillion.
With most analysts saying a $1.5 trillion valuation would be more realistic, the sale process requires Aramco to open the books on the workings of a part of the economy that's long been near to a state secret. The kingdom-owned Aramco extracts crude, natural gas and other oil liquids from the mountainous sand dunes of the Empty Quarter to the waters of the Gulf.
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Sunday 3 November 2019
Aramco May Be Worth $1.5 Trillion or Less, Some IPO Banks Say - Bloomberg
Aramco May Be Worth $1.5 Trillion or Less, Some IPO Banks Say - Bloomberg:
Saudi Aramco may be worth as little as $1.5 trillion or even less, well below the target set by the kingdom, according to research sent on Sunday to potential investors by the banks involved in the company’s initial public offering.
The research, according to multiple investors who reviewed it, suggests the banks are struggling to pinpoint a precise valuation for Aramco. Some banks offered a huge range -- as much as $1 trillion in the case of Bank of America -- between their low and high estimates.
The pre-IPO research reports, which the banks use to drum up interest on share sales, suggest Riyadh may struggle to achieve the $2 trillion valuation that Saudi Crown Prince Mohammed bin Salman has publicly desired over the last three years.
Saudi Aramco may be worth as little as $1.5 trillion or even less, well below the target set by the kingdom, according to research sent on Sunday to potential investors by the banks involved in the company’s initial public offering.
The research, according to multiple investors who reviewed it, suggests the banks are struggling to pinpoint a precise valuation for Aramco. Some banks offered a huge range -- as much as $1 trillion in the case of Bank of America -- between their low and high estimates.
The pre-IPO research reports, which the banks use to drum up interest on share sales, suggest Riyadh may struggle to achieve the $2 trillion valuation that Saudi Crown Prince Mohammed bin Salman has publicly desired over the last three years.
#UAE Plans to Loosen Cap on Bank Lending to Property Industry - Bloomberg
U.A.E. Plans to Loosen Cap on Bank Lending to Property Industry - Bloomberg:
The United Arab Emirates’ central bank is working on new rules that will loosen the cap on bank lending to the struggling real-estate industry.
U.A.E. banks can currently lend as much as 20% of customer deposits to the property industry. That will be raised to a still-undecided figure but lenders that exceed 20% would incur a capital charge, central bank Governor Mubarak Rashed Al Mansoori said in Abu Dhabi on Sunday.
“We need to be flexible,” Al Mansoori said at a conference. But banks would “need to assess the risk-return profile of this investment. Is it worthwhile, do I want more capital?”
The United Arab Emirates’ central bank is working on new rules that will loosen the cap on bank lending to the struggling real-estate industry.
U.A.E. banks can currently lend as much as 20% of customer deposits to the property industry. That will be raised to a still-undecided figure but lenders that exceed 20% would incur a capital charge, central bank Governor Mubarak Rashed Al Mansoori said in Abu Dhabi on Sunday.
“We need to be flexible,” Al Mansoori said at a conference. But banks would “need to assess the risk-return profile of this investment. Is it worthwhile, do I want more capital?”
How visa reforms boost #UAE economy | ZAWYA MENA Edition
How visa reforms boost UAE economy | ZAWYA MENA Edition:
The UAE is led by a vision to build a knowledge-based economy and this is affirmed by a slew of measures it has undertaken to facilitate entrepreneurs in the country as well as foreign investors. The series of visa reforms initiated by the government will enhance the UAE's attractiveness among expats, encouraging knowledge workers to pursue longer stints in the country. The presence of rich expat talent will persuade foreign companies to enter and operate from the UAE.
Typing centres in Dubai are seeing an unusual rush for investors applying for five- and 10-year visas.
"We have lot of enquiries for five- and 10-year visas, which are being issued from immigration and land departments only. Investors are showing more confidence and they are willing to invest more in the UAE, which will assure surge in the cash flow," Firose Khan, manager of Arabian Business Centre, said.
The UAE is led by a vision to build a knowledge-based economy and this is affirmed by a slew of measures it has undertaken to facilitate entrepreneurs in the country as well as foreign investors. The series of visa reforms initiated by the government will enhance the UAE's attractiveness among expats, encouraging knowledge workers to pursue longer stints in the country. The presence of rich expat talent will persuade foreign companies to enter and operate from the UAE.
Typing centres in Dubai are seeing an unusual rush for investors applying for five- and 10-year visas.
"We have lot of enquiries for five- and 10-year visas, which are being issued from immigration and land departments only. Investors are showing more confidence and they are willing to invest more in the UAE, which will assure surge in the cash flow," Firose Khan, manager of Arabian Business Centre, said.
#Saudi Aramco: the oil colossus - Reuters
Saudi Aramco: the oil colossus - Reuters:
Aramco, as Saudi Arabian Oil Co is usually known, is set to add another superlative to the list: the world’s most valuable listed company.
The sprawling state-owned oil giant announced on Sunday its intention to float on the Riyadh stock market, saying the percentage of shares to be sold would be determined at the end of the book-building period.
Sources have said Aramco could offer 1%-2% of its shares on the local bourse, raising as much as $20 billion-$40 billion.
Aramco, as Saudi Arabian Oil Co is usually known, is set to add another superlative to the list: the world’s most valuable listed company.
The sprawling state-owned oil giant announced on Sunday its intention to float on the Riyadh stock market, saying the percentage of shares to be sold would be determined at the end of the book-building period.
Sources have said Aramco could offer 1%-2% of its shares on the local bourse, raising as much as $20 billion-$40 billion.
#Saudi Aramco kick-starts what could be world's biggest IPO, offers scant details - Reuters
Saudi Aramco kick-starts what could be world's biggest IPO, offers scant details - Reuters:
Saudi Arabia’s giant state oil company finally kick-started its initial public offering (IPO) on Sunday, announcing its intention to float on the domestic bourse in what could be the world’s biggest listing as the kingdom seeks to diversify its economy away from oil.
But in its long-awaited announcement, Aramco, the world’s most profitable company, offered few specifics on the number of shares to be sold, pricing or the date for a launch.
Bankers have told the Saudi government that investors will likely value the company at around $1.5 trillion, below the $2 trillion valuation touted by Crown Prince Mohammed bin Salman when he first floated the idea of an IPO nearly four years ago.
Saudi Arabia’s giant state oil company finally kick-started its initial public offering (IPO) on Sunday, announcing its intention to float on the domestic bourse in what could be the world’s biggest listing as the kingdom seeks to diversify its economy away from oil.
But in its long-awaited announcement, Aramco, the world’s most profitable company, offered few specifics on the number of shares to be sold, pricing or the date for a launch.
Bankers have told the Saudi government that investors will likely value the company at around $1.5 trillion, below the $2 trillion valuation touted by Crown Prince Mohammed bin Salman when he first floated the idea of an IPO nearly four years ago.
MIDEAST STOCKS- #Saudi stocks tumble as investors braces for Aramco IPO - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi stocks tumble as investors braces for Aramco IPO - Agricultural Commodities - Reuters:
Saudi's stocks suffered their biggest
intraday decline since late August on Sunday as local
institutions sold shares to prepare for Saudi Aramco's listing,
while Dubai was dragged down by its top lender Emirates NBD.
Aramco on Sunday announced its intention to float on the
domestic stock market in what could be the world's biggest
listing as the kingdom seeks to diversify its economy away from
oil.
Aramco did not give a timeframe or say how much of the
company it would sell, but sources have told Reuters the oil
company could offer 1%-2% of its shares, raising as much $20
billion-$40 billion.
Some local investors could be selling other shares in order
to shift investments to Aramco, in what could be a case of
"short-term pain for long-term gain", said Salah Shamma, head of
investment, MENA, at Franklin Templeton Emerging Markets Equity.
Saudi's stocks suffered their biggest
intraday decline since late August on Sunday as local
institutions sold shares to prepare for Saudi Aramco's listing,
while Dubai was dragged down by its top lender Emirates NBD.
Aramco on Sunday announced its intention to float on the
domestic stock market in what could be the world's biggest
listing as the kingdom seeks to diversify its economy away from
oil.
Aramco did not give a timeframe or say how much of the
company it would sell, but sources have told Reuters the oil
company could offer 1%-2% of its shares, raising as much $20
billion-$40 billion.
Some local investors could be selling other shares in order
to shift investments to Aramco, in what could be a case of
"short-term pain for long-term gain", said Salah Shamma, head of
investment, MENA, at Franklin Templeton Emerging Markets Equity.
#Saudi Aramco launches long-awaited IPO | Financial Times
Saudi Aramco launches long-awaited IPO | Financial Times:
Saudi Aramco launched its long-awaited initial public offering on Sunday after delays triggered by doubts over the ability of the world’s most profitable company to secure the $2tn valuation coveted by the oil-rich kingdom’s Crown Prince Mohammed bin Salman.
The listing of the state energy firm is the centrepiece of Prince Mohammed’s ambitious plan to overhaul Saudi Arabia’s oil-addicted economy and would mark a milestone in his aggressive drive to reshape the conservative kingdom.
It is expected to be the world’s largest IPO with Riyadh hoping to raise as much as $60bn. However, the process has been dogged by questions over the valuation of Saudi Aramco, with bankers and analysts saying $1.2tn to $1.5tn is more realistic.
Saudi Aramco launched its long-awaited initial public offering on Sunday after delays triggered by doubts over the ability of the world’s most profitable company to secure the $2tn valuation coveted by the oil-rich kingdom’s Crown Prince Mohammed bin Salman.
The listing of the state energy firm is the centrepiece of Prince Mohammed’s ambitious plan to overhaul Saudi Arabia’s oil-addicted economy and would mark a milestone in his aggressive drive to reshape the conservative kingdom.
It is expected to be the world’s largest IPO with Riyadh hoping to raise as much as $60bn. However, the process has been dogged by questions over the valuation of Saudi Aramco, with bankers and analysts saying $1.2tn to $1.5tn is more realistic.
Key Facts From #Saudi Aramco's Intention to Float in Riyadh - Bloomberg
Key Facts From Saudi Aramco's Intention to Float in Riyadh - Bloomberg:
Saudi Aramco on Sunday announced its intention to proceed with an initial public offering in Riyadh. The final offer price, number of shares to be sold and percentage of the shares to be sold will be determined at the end of the book-building period.
Retail investors:
Saudi Aramco on Sunday announced its intention to proceed with an initial public offering in Riyadh. The final offer price, number of shares to be sold and percentage of the shares to be sold will be determined at the end of the book-building period.
Retail investors:
- Saudi retail investors will be eligible to receive one share for every 10 allotted shares if they continuously and uninterruptedly hold the shares for 180 days from the first date of trading and listing on the exchange
- Maximum bonus shares will be 100 per investor
- Retail investors can be non-Saudi natural person who is resident in the kingdom and any GCC national
Saudi Aramco News: IPO Approved by #SaudiArabia - Bloomberg
Saudi Aramco News: IPO Approved by Saudi Arabia - Bloomberg:
Saudi Arabia finally kicked off what could be the world’s biggest initial public offering, revealing potential tax cuts and dividends to lure investors.
More than three years after Crown Prince Mohammed bin Salman first raised the idea -- and just three weeks after a plan to launch the share sale was abruptly delayed -- oil giant Saudi Aramco announced its intention on Sunday to list shares on the local stock exchange in Riyadh. The shares are likely to start trading in December.
Aramco’s valuation will be determined during the investor roadshow and book-building for the initial public offering, Chairman Yasir Al-Rumayyan said at a news conference at Aramco’s headquarters in the eastern city of Dhahran.
Saudi Arabia finally kicked off what could be the world’s biggest initial public offering, revealing potential tax cuts and dividends to lure investors.
More than three years after Crown Prince Mohammed bin Salman first raised the idea -- and just three weeks after a plan to launch the share sale was abruptly delayed -- oil giant Saudi Aramco announced its intention on Sunday to list shares on the local stock exchange in Riyadh. The shares are likely to start trading in December.
Aramco’s valuation will be determined during the investor roadshow and book-building for the initial public offering, Chairman Yasir Al-Rumayyan said at a news conference at Aramco’s headquarters in the eastern city of Dhahran.
MENA IPO value drops by 45% in Q3 2019: EY | ZAWYA MENA Edition
MENA IPO value drops by 45% in Q3 2019: EY | ZAWYA MENA Edition:
Initial Public Offering (IPO) deal value in the MENA region dropped nearly by half in Q3 2019 compared to the same period last year, a report by EY showed.
The EY MENA IPO Eye Report said that IPO value in the region fell by 45.3 percent in Q3 2019 to $190 million, from $347.3 million in Q3 2018.
Two deals were recorded in Saudi Arabia and Egypt in the quarter, compared to four deals in Q3 2018, the EY report showed.
Initial Public Offering (IPO) deal value in the MENA region dropped nearly by half in Q3 2019 compared to the same period last year, a report by EY showed.
The EY MENA IPO Eye Report said that IPO value in the region fell by 45.3 percent in Q3 2019 to $190 million, from $347.3 million in Q3 2018.
Two deals were recorded in Saudi Arabia and Egypt in the quarter, compared to four deals in Q3 2018, the EY report showed.
Aramco says attack did not impact finances, operations - Reuters
Aramco says attack did not impact finances, operations - Reuters:
Saudi Aramco said it does not expect a recent attack on its oil plants to have a material impact on finances and operations as it launched an initial public offering (IPO) on Sunday by announcing its intent for a domestic flotation.
Aramco CEO Amin Nasser told a news conference after the IPO intent statement was published that the world’s largest oil firm was still the most reliable oil company globally.
The Sept. 14 strikes had targeted the Abqaiq and Khurais plants at the heart of Saudi Arabia’s oil industry, temporarily shutting down 5.7 million barrels per day (bpd) of output - more than 5% of global oil supply.
Saudi Aramco said it does not expect a recent attack on its oil plants to have a material impact on finances and operations as it launched an initial public offering (IPO) on Sunday by announcing its intent for a domestic flotation.
Aramco CEO Amin Nasser told a news conference after the IPO intent statement was published that the world’s largest oil firm was still the most reliable oil company globally.
The Sept. 14 strikes had targeted the Abqaiq and Khurais plants at the heart of Saudi Arabia’s oil industry, temporarily shutting down 5.7 million barrels per day (bpd) of output - more than 5% of global oil supply.
#SaudiArabia formally starts IPO of oil firm Saudi Aramco
Saudi Arabia formally starts IPO of oil firm Saudi Aramco:
Saudi Arabia formally began an initial public offering Sunday of a sliver of oil giant Saudi Aramco after years of delay, hoping international and local investors will pay billions of dollars for a stake in the kingdom’s crown jewels.
An approval by Saudi Arabia’s Capital Market Authority served as the starting gun for an IPO promised by Crown Prince Mohammed bin Salman since 2016. But unlike traditional IPOs, Saudi Aramco offered no hoped-for price range for its shares nor any idea how much of the firm would be offered to investors on Riyadh’s Tadawul stock exchange.
Analysts say the kingdom likely hopes local investors will push its share prices toward a desired $2 trillion valuation and buoy that price ahead of any possible further listing abroad. Saudi Aramco also made a point in its filings to highlight its profitability and low costs through newly released data once held as a state secret by the Al Saud royal family, euphemistically referred to by the company as its “current shareholder.”
Saudi Arabia formally began an initial public offering Sunday of a sliver of oil giant Saudi Aramco after years of delay, hoping international and local investors will pay billions of dollars for a stake in the kingdom’s crown jewels.
An approval by Saudi Arabia’s Capital Market Authority served as the starting gun for an IPO promised by Crown Prince Mohammed bin Salman since 2016. But unlike traditional IPOs, Saudi Aramco offered no hoped-for price range for its shares nor any idea how much of the firm would be offered to investors on Riyadh’s Tadawul stock exchange.
Analysts say the kingdom likely hopes local investors will push its share prices toward a desired $2 trillion valuation and buoy that price ahead of any possible further listing abroad. Saudi Aramco also made a point in its filings to highlight its profitability and low costs through newly released data once held as a state secret by the Al Saud royal family, euphemistically referred to by the company as its “current shareholder.”
#UAE central bank governor says it is studying aid to Lebanon - Reuters
UAE central bank governor says it is studying aid to Lebanon - Reuters:
The United Arab Emirates’ central bank is studying aid to Lebanon and will make a recommendation to the Gulf state’s leadership, its governor said on Sunday.
“We decided to study and recommend to the leadership in light of developments recently,” Mubarak Rashid al-Mansouri told reporters when asked whether the UAE had given any aid to Lebanon since that country’s prime minister visited last month.
Mansouri added that specifics had not been agreed upon and that he hoped the situation would improve in Lebanon, which is grappling with its worst economic crisis since the 1975-90 civil war and nationwide protests.
The United Arab Emirates’ central bank is studying aid to Lebanon and will make a recommendation to the Gulf state’s leadership, its governor said on Sunday.
“We decided to study and recommend to the leadership in light of developments recently,” Mubarak Rashid al-Mansouri told reporters when asked whether the UAE had given any aid to Lebanon since that country’s prime minister visited last month.
Mansouri added that specifics had not been agreed upon and that he hoped the situation would improve in Lebanon, which is grappling with its worst economic crisis since the 1975-90 civil war and nationwide protests.
#SaudiArabia kick-starts IPO of world's largest oil company - Reuters
Saudi Arabia kick-starts IPO of world's largest oil company - Reuters:
Saudi Arabia’s state oil company kick-started its initial public offering (IPO) on Sunday, announcing its intention to list on the domestic bourse as the kingdom seeks to diversify and create the world’s most valuable listed company.
Aramco did not give a time frame or say how much of the company it would sell, but sources have told Reuters the oil company could offer 1%-2% of its shares on the local bourse, raising as much as $20 billion-$40 billion.
Aramco said the IPO would be split into two tranches: one each for institutional and individual investors. The percentage of shares to be sold and the purchase price would be determined after the book-building period, it added in a statement.
Saudi Arabia’s state oil company kick-started its initial public offering (IPO) on Sunday, announcing its intention to list on the domestic bourse as the kingdom seeks to diversify and create the world’s most valuable listed company.
Aramco did not give a time frame or say how much of the company it would sell, but sources have told Reuters the oil company could offer 1%-2% of its shares on the local bourse, raising as much as $20 billion-$40 billion.
Aramco said the IPO would be split into two tranches: one each for institutional and individual investors. The percentage of shares to be sold and the purchase price would be determined after the book-building period, it added in a statement.
MIDEAST STOCKS-Banks, petchems pressure #Saudi market; other bourses mixed - Agricultural Commodities - Reuters
MIDEAST STOCKS-Banks, petchems pressure Saudi market; other bourses mixed - Agricultural Commodities - Reuters:
Saudi Arabia’s stock market fell sharply on Sunday, dragged down by financial and petrochemical stocks, while other Gulf markets were mixed.
Saudi Arabia’s index declined 2.3% with market heavyweight Al Rajhi Bank losing 2.8% and National Commercial Bank, the country’s largest lender by assets, down 3%.
Saudi British Bank slid 3.1% after it posted a flat third-quarter net profit, thanks to an increase in the provision for losses related to its merger with Alawwal Bank.
Saudi Arabia’s stock market fell sharply on Sunday, dragged down by financial and petrochemical stocks, while other Gulf markets were mixed.
Saudi Arabia’s index declined 2.3% with market heavyweight Al Rajhi Bank losing 2.8% and National Commercial Bank, the country’s largest lender by assets, down 3%.
Saudi British Bank slid 3.1% after it posted a flat third-quarter net profit, thanks to an increase in the provision for losses related to its merger with Alawwal Bank.
#UAE is 'over 100%' committed to Opec+ agreement: Minister - Reuters
UAE is 'over 100%' committed to Opec+ agreement: Minister - Reuters:
United Arab Emirates minister of energy and industry Suhail al-Mazrouei said on Saturday that the UAE is “over 100%” committed to the OPEC+ agreement to curb oil production, state news agency WAM reported.
The minister said the UAE’s production under the agreement is 3,000,072 barrels per day.
United Arab Emirates minister of energy and industry Suhail al-Mazrouei said on Saturday that the UAE is “over 100%” committed to the OPEC+ agreement to curb oil production, state news agency WAM reported.
The minister said the UAE’s production under the agreement is 3,000,072 barrels per day.
#Saudi Aramco IPO to Have Lower Valuation - Bloomberg
Saudi Aramco IPO to Have Lower Valuation - Bloomberg:
Saudi Arabia will compromise on valuation to ensure the initial public offering of Aramco is a success.
The Kingdom is ready to accept less than the $2 trillion Crown Prince Mohammed bin Salman has long insisted the state oil giant is worth. Bankers will instead target a valuation of $1.6 trillion to $1.8 trillion after the record share sale was given the green light by Prince Mohammed on Friday, according to people briefed on the matter.
The willingness to accept a lower valuation shows the prince has put getting the deal done above being proved right on his $2 trillion estimate. The IPO -- a centerpiece of the Vision 2020 plan to transform the Saudi economy -- is still likely to set records, outstripping the $25 billion by Alibaba Group Holding Ltd. in 2015.
Saudi Arabia will compromise on valuation to ensure the initial public offering of Aramco is a success.
The Kingdom is ready to accept less than the $2 trillion Crown Prince Mohammed bin Salman has long insisted the state oil giant is worth. Bankers will instead target a valuation of $1.6 trillion to $1.8 trillion after the record share sale was given the green light by Prince Mohammed on Friday, according to people briefed on the matter.
The willingness to accept a lower valuation shows the prince has put getting the deal done above being proved right on his $2 trillion estimate. The IPO -- a centerpiece of the Vision 2020 plan to transform the Saudi economy -- is still likely to set records, outstripping the $25 billion by Alibaba Group Holding Ltd. in 2015.