Saitama Rakuten International Says Aramco IPO Could Break Records
The company plans to roll out a two-part offering, with 1-2% of its shares being offered on the Tadawul, Riyadh’s domestic stock exchange, during the first stage. The next phase would consist of selling 5% of shares on the international market, but the timing for that is currently left only to speculation.
Despite the sheer size of the upcoming IPO, concerns are plentiful among potential investors worldwide. Both the oil market and the global economy have been slowing down, and there is much uncertainty when it comes to the future. Additionally, investors are worried about the recent drone strikes on Aramco’s largest plant, fearing that more attacks may be on the way.
“From a broader perspective, investing in oil may not be as lucrative as it once was. Aramco established dominance in a period when oil sales were essentially a given, with auto manufacturing and utilization consistently on the rise,” said Nicholas Cooke, Head of Corporate Trading at Saitama Rakuten International.
The Aramco IPO will undoubtedly raise an enormous amount of capital, and prospects look good for the immediate future. However, there are many concerns about the company’s long-term sustainability, and it remains to be seen whether this will be as successful as Saudi Arabia believes it will.
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