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FinancialNews


  • 06-11-19

    USD1.4trn banks offer on Aramco IPO valuation

    (MENAFN) Caught between a client seeking a USD2 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.

    However, there is a risk that the result will not please anybody.

    More than 20 banks were appointed by Aramco 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. Agreement is in short supply.

    According to people who've reviewed all the research, among 16 banks that offered a valuation, the range in estimates ran from USD1.1 trillion at the bottom right up to USD2.5 trillion, a number that even Saudi Crown Prince Mohammed bin Salman might find optimistic. The midpoint was USD1.75 trillion.

    MENAFN0611201900450000ID1099230279

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