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Saudi Aramco IPO reportedly all set to kick-off after Saudi Crown Prince approval

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Saudi Aramco

You must have heard the news about Saudi Aramco being attacked in the heart of Saudi Arabia. This is the biggest oil manufacturing plant in the world and 10% supply of oil for the global market comes from here. We were told that the Saudi Aramco plant had to be shut off and its operations were reduced to half after the attacks. This meant that the production of the plant also reduced to half. Due to the attacks, one of the major announcements from Saudi Aramco had to be delayed which was that the plant was launching its own IPO.

Now that the production has come back to normal after the attacks, talks regarding Saudi Aramco’s IPO have re-emerged. It is also said that the company is all set to kick-off its IPO and sources also mention that the Saudi Crown Prince has given his approval for the IPO. Reuters reported citing their sources about this possible development. Also, Reuters revealed that the announcement of Saudi Aramco’s IPO will be done on Sunday. On top of that, Saudi Aramco wants its IPO to hit $2 trillion valuation and they have already met investors for the same.

However, the publication also says that there is a dilemma facing the Saudi Crown Prince. It is either to “swallow the bitter pill” and go ahead with a valuation of less than $2 trillion or postpone the public IPO offering. Some insiders and advisers have said that the Saudi Aramco’s $2 Trillion valuation of the company is considered to be too ambitious.

Talking about context, Saudi Aramco’s $2 trillion valuation is even higher than the GDP of Canada which is less than $2 trillion at the moment. However, sources also say that a $1.5 trillion valuation for Saudi Aramco will be more likely amidst global climate change activism which would lead people not to invest in oil companies.

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