by Possible Aramco will likely be largest IPO ever
Over the past week, the market has seen triggering points that forecast a possible recession. For that reason, it is ever more important to diversify and invest in international markets. I believe Saudi Aramco will be the next big international stock for our portfolio. Saudi Arabian Oil Company, more commonly known as Aramco, is a privately held petroleum and natural gas company based in Dhahran, Saudi Arabia. According to Bloomberg news, it is one of the largest companies by revenue and the most profitable company in the world. One of the most intriguing things about the company is that the Saudi Arabian Government completely controls it. The government’s involvement, however, has caused some issues
Saudi Arabia’s control of Aramco has caused controversy regarding the IPO location. The IPO plans to raise about $100 Billion by selling 5% of its privately held shares on a public market (Saudi Officials have not confirmed these numbers). The IPO will be made in two parts; first on the Saudi stock exchange later this year and then an international listing in 2020. The largest stock exchanges around the world have been vying to have the first IPO for Aramco. However, New York was the favorite location by Prince Mohammed Bin Salman. Having the IPO in New York raises many legal concerns for the company, regarding climate change and the sovereignty of the company. Analysts from around the world say the company has been looking at London and Hong Kong as well. Ultimately, this decision is to be made by the Prince of Saudi Arabia.