Saudi Aramco’s IPO could be the world’s biggest IPO
Why invest in Aramco today?
Saudi Arabia put a valuation on oil giant Aramco of between $1.6 trillion and $1.71 trillion, well below the $2 trillion target sought by Crown Prince Mohammed bin Salman since he first touted the deal in 2016.
The new valuation implies Aramco, which has promised a dividend of at least $75 billion next year, will reward investors with a yield of between 4.4 per cent and 4.7 per cent! That compares with just under 5 per cent for Exxon Mobil and 6.4 per cent for Shell.
At this rate, it would dwarf last year’s payouts from the 80 listed firms on the Saudi bourse that paid dividends, according to data compiled by Bloomberg. Investors who buy into the IPO have been guaranteed that the dividend won’
No matter what the final valuation, the share sale will create a public company of unmatched profitability. Aramco earned a net income of $111 billion in 2018 on revenue of $315 billion. It pumps about 10 per cent of the world’s oil from giant fields under the kingdom’s deserts.
What are local investors doing?
The company is so big, investors and analysts were concerned it could drain liquidity from the Saudi market. In recent months, many analysts have said that local investors -- key for a successful deal -- were offloading some of their portfolio to buy Aramco shares.
The company generated earnings before interest, tax and depreciation of $224 billion last year , Fitch said, which is remarkably above the $82 billion of Apple or the $40 billion of Exxon Mobil. The credit rating agency awarded Aramco A-plus ratings ahead of its debut in the international bond market.
There is no other investment in the world that has so much potential to be profitable in such a short term.
The regulated online investment platform allows you to invest in Aramco (to invest you must be over 18 years old). Registration on the platform is free. And with only an initial capital of $ 200, you can not only invest in Aramco , but also have:
- An exclusive account agent
- 24/7 support and continuous assistance
- Notifications and suggestions also via email and pop-up windows
- Webinars and training courses on online investments
- Earnings deposited in your account in 24 hours
- Safe and authorized platform
Next steps
