Saudi Aramco seeking new investors from Asia in IPO

IPO

Saudi Aramco wanted to tackle the targeted $2 trillion valuation for its initial public offering (IPO) by increasing dividends, paying fewer taxes and discovering cornerstone investments from major Asian oil producers.

The moves, which came as the state-run company said it had reinstated all output halted by attacks on its main crude-processing facility last month, show preparations are quickening for the listing, with the goal of offering shares on the Saudi bourse as soon as November. The IPO is the centrepiece of Crown Prince Mohammed Bin Salman’s plans to restore the Saudi economy and release billions in capital for the kingdom’s sovereign wealth fund. The steps taken to make Aramco a more appealing investment and guarantee demand for shares come amidst scepticism that the prince’s valuation is attainable.

If the kingdom meets that target, the proposed pay-out of $75bn next year would still leave dividend yields less than those already offered by rivals like Exxon Mobil and Royal Dutch Shell. While Aramco is the world’s most lucrative company and produces about 10 per cent of the world’s oil, it also carries bigger risks, as illustrated by the drone and missile strike on key facilities in September. The 2020 payment is part of plan for a developing, progressive dividend to investors, according to a corporate presentation posted on the company’s website on Monday.

 

 

Shreyas Tanna

About Shreyas Tanna

The winner of Mr. Pune 2009 Pageant, Mr. Shreyas Tanna is currently the young, dashing, and dynamic CEO of a market research company called Research N Reports in Pune. Fondly known as RNR, the company specializes in market research as well as industry analysis, and is closely associated with its parent company Absolute Markets Insights (AMI). Mr. Shreyas Tanna began his corporate journey as the Head of Corporate sales & PR at RED Entertainment while pursuing his degree for MMS (Marketing) from the MGM College of Management, Mumbai. After accomplishing the tedious task of balancing his work and education, he further polished his skills in Corporate Sales, Public Relations, Channel Development, Global Client Engagement, Strategic Consulting, and Brand Development by working with HDFC Life and ResearchMoz Global Pvt. Ltd. His dedication towards his work has even won him accolades such as the National Level Performer 2013 – HDFC Life and Mr. ResearchMoz 2015. A disciplined individual with a loving heart, he is often seen taking crisp walks with an engrossed look and a gentle smile within the premises of his company to interact with the various departments. And he will be usually followed by an adorable trail of his beloved trio of Shih Tzu babies proudly known as Gucci, Drake, and Paris. The most enticing thing that you will notice about this content and proud pet parent is his infectious positivity and the firm belief in his eyes, a reflection of his favorite quote, “LIFE IS BEAUTIFUL!”

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