Saudi Aramco sale stake will be near 5%, prince says

May 2, 2017 5:44 PM ET|By: Carl Surran, SA News Editor 


The planned sale of a stake in the Saudi Aramco national oil company "will be not be very far off 5%" and occur in 2018, Deputy Crown Prince Mohammed bin Salman says.

The Saudi government would retain sole control over Aramco's oil and gas reserves and would decide on production levels, and would have a concession to monetize those reserves, Prince Mohammed says.

The proceeds from the Aramco sale will help to develop other industries inside Saudi Arabia and will be invested by the kingdom's top sovereign wealth fund, according to the prince, who has said the IPO would value Aramco at ~$2T.

And comments below

Jihaad Arsehole

More money for the Saudis to sponsor more Islamic terrorists to Kill more non-Muslims world wide and thanks to the Westerns who are buy into Aramco IPO. Fools

speerfish

So they get 2 trillion for 5%, an American IPO, then they tax the hell out of it and get another 10 trillion off production, processing and a handling fee, from the Americans and we use their oil on top of that...go shale drillers!!!!


Baidewei

NAH - if you read the release carefully - they don't even own their reserves so 2 trillion is not a very reasonable valuation for an operator that is not an owner.


lowdawg81

I've seen reports that bankers most optimistic projection is $1.5T. Which is still roughly $75B Gross proceeds from a IPO.


Baidewei

ALL of the reports seem to assume the reservoirs are owned by Saudi Aramco and are part of the valuation. This is absolutely wrong.


Baidewei

XOM - just as an example - is only 350 billion.


moneybags9

Biggest company in the world right here


lowdawg81

It's not a true company, it's a GSE. Which if PBR is any indication, it'll be poorly ran while being saddled with debt and corruption.


MrHawkeye

I am not an expert on oil field valuations or even the business itself, however, I have dealt with the Saudi's in Riyadh... and while many are fine and smart....there is just a lot of corruption(they dont necessarily consider it corruption) at the top and I wouldnt touch this investment as a stockholder with a ten foot pole. They are used to total control-- and with this arrangement they have it. Makes the Russians/Putin look like amateurs. I am sure it will be touted by the firms offering the IPO shares .....ha, and why not, they will make millions.


snafzee

Corruption is the law in Saudi, Putin learns from the Saudi family. I wouldn't even spit on that stock


Doug-

Well this mean the growth phase for Saudis is over. They see the handwriting on the wall. Stagnation is the future for the Saudia Arabia.


goat21

5% transparent.


lowdawg81


Can this even be listed on a US exchange? Since it's essentially a GSE wouldn't it violate the Patriot Act.