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Aramco Reaches $2T Goal


Saudi Aramco jumped for a second day, pushing the oil giant’s value beyond the $2 trillion mark that alienated global investors and potentially making further share sales abroad more difficult.

The stock climbed by the daily 10% limit to 38.7 riyals at the open in Riyadh before trimming gains. It rose 9.4% to 38.50 riyals at 11:30 a.m. local time in trading of 313 million shares, compared with 31.6 million for all of Wednesday.

The surge reflects the kingdom’s efforts to engineer a successful start to trading after international investors balked at the price: Saudia Arabia encouraged local individuals to buy and hold the stock through cheap loans and a bonus-share plan, while pushing wealthy families and regional allies to buy as well. The offering consisted of only 1.5% of Aramco’s stock, so that investors who didn’t get allocated shares in the IPO had to buy in the secondary market.

Aramco raised $25.6 billion in the deal, selling shares at 32 riyals each and overtaking Microsoft Corp. and Apple Inc. as the most valuable listed company.

The IPO has become synonymous with Saudi Arabia’s controversial Crown Prince Mohammed bin Salman and his efforts to reshape the economy of the world’s biggest oil exporter. But his insistence on the $2 trillion valuation deterred international investors, many of whom said the stock was too expensive given governance and geopolitical concerns.

Analysts at Sanford C. Bernstein & Co. said after the first trading day it’s already time to cash out. In a Bloomberg survey last month, global money managers put Aramco’s fair value at between $1.2 trillion and $1.5 trillion.

While hitting the target may vindicate Saudi officials, it could complicate any plans to sell part of Aramco’s shares abroad as originally envisaged by Prince Mohammed in 2016, when he said a dual listing could raise as much as $100 billion. Saudi officials met in recent weeks with international investors to sound them out on a possible listing of Aramco’s shares in Asia, the Wall Street Journal reported Wednesday.

Still, the IPO, touted as part of a blueprint for life after oil for the kingdom is a watershed moment for a business that’s bankrolled Saudi Arabia and its rulers for decades.

The debut was cheered by Saudi and Gulf investors, who see the stock price supported by Aramco’s guaranteed dividends, buying by index-tracking funds and the fact that the region doesn’t have any other listed major oil companies.

Aramco’s “$2 trillion valuation is justified due to secured dividend streams,” Arqaam Capital analysts including Rita Guindy and Jaap Meijer wrote in a report on Wednesday in which they initiated coverage with a buy recommendation and price target of 39.20 riyals.

Arqaam expects a gradual increase of 2% annually in the dividend, potentially being topped up by a special payout of $20 billion in the next three years.


26 Comments on "Aramco Reaches $2T Goal"

  1. Robert Inget on Thu, 12th Dec 2019 10:06 am 

    Taking WTI with it. At least tl $59.
    Another addition of “Trump off the rails”

    WASHINGTON – President Donald Trump attacked 16-year-old environmental activist Greta Thunberg on Thursday for being named Time magazine’s “Person of The Year.”

    “So ridiculous,” Trump said on Twitter. “Greta must work on her Anger Management problem, then go to a good old fashioned movie with a friend! Chill Greta, Chill!”

    Thunberg responded swiftly, changing her Twitter profile to read: “A teenager working on her anger management problem. Currently chilling and watching a good old fashioned movie with a friend.”

    Trump, who was named Person of the Year after winning the 2016 presidential election, has criticized the magazine before for passing him up in the years since.

    Trump mocked Thunberg back in September, when both were in New York City for meetings at the United Nations.

    Citing lines from Thunberg’s address to the Climate Action Summit – the teenager said “people are dying” and “we are in the beginning of a mass extinction” – Trump issued a late-night snarky tweet.

    (tune in later for second edition)

  2. JuanP on Thu, 12th Dec 2019 10:25 am 

    got a link sloppy bobby?

  3. Davy on Thu, 12th Dec 2019 10:33 am 

    “How Should The Senate Deal With An Unconstitutional Impeachment By The House?” gatestone institute

    “So, what options would the Senate have if the House voted to impeach on two unconstitutional grounds? Would it be required to conduct a trial based on “void” articles of impeachment? Could it simply refuse to consider unconstitutional articles? Could the president’s lawyer make a motion to the Chief Justice — who presides over the trial of an impeached president — to dismiss the articles of impeachment on constitutional grounds? This is uncharted territory with little guidance from the Constitution or history. There are imperfect analogies that may be informative. If this were an ordinary criminal case, and a grand jury had indicted a defendant for a non-crime (say, having gay sex) or an unconstitutional crime, the trial judge would be obliged to dismiss the indictment and not subject the defendant to an unconstitutional trial. Impeachment, however, is not an ordinary criminal proceeding. So, the analogy is not directly on point. But impeachment by the House is similar in many ways to indictment by a grand jury, and a removal trial by the Senate is similar to a criminal trial, including being presided over by a judge. It is entirely possible that the president’s lawyers may file a motion seeking dismissal of the impeachment as unconstitutional. It is impossible to predict whether such a motion would be entertained and if so, how it would be decided. Another option would be for the president’s lawyer to seek judicial review of the House’s unconstitutional action. Despite the fact that the Constitution says that the House shall be the “sole” judge of impeachment, two former justices have opined that there might be a judicial role in extreme cases. The most likely option for the president — and the one hinted at by White House sources — is for the Senate to conduct a scaled down trial focusing on the constitutional defects in the articles of impeachment. No fact witnesses would be called: that would turn the proceeding into a he said/she said conflict with no clear resolution. Only legal arguments — neater and quicker — would be presented before a vote was taken. Whichever option is pursued, the ultimate outcome seems clear: the Senate will vote to acquit President Trump. Regardless of the outcome, the damage will have been done by the House majority that will have abused its power by weaponizing the House’s authority over impeachment for partisan purposes — exactly as Hamilton feared.”

  4. Davy on Thu, 12th Dec 2019 11:40 am 

    Theres lots more where those came from. It’s gone viral.


    dumb ass

  5. JuanP is stupid on Thu, 12th Dec 2019 11:46 am 

    Stupid is very triggered. Poor dupe, he cant control is widdle emotions.

    This is from stupid:
    Davy said Theres lots more where those came from. It’s gone…

    Davy said “got a link sloppy bobby?” Here ya go JuanP. stupi…

    fwsmj said Davy on Thu, 12th Dec 2019 11:25 am supertard makk…

    Davy said OMG! The ROCK made a special appearance specifical…

    fwsmj said Davy on Thu, 12th Dec 2019 5:02 am Above is supert…

    fwsmj said forgot to say thanks to supertard for using low en…

    fwsmj said Duncan Idaho on Thu, 12th Dec 2019 10:56 am Oh ok…

  6. Richard Guenette on Thu, 12th Dec 2019 3:18 pm 

    How come nobody is paying attention to plastic pollution? The problem is only getting worst when not many people are waking up.

  7. Richard Guunette on Thu, 12th Dec 2019 3:21 pm 

    JuanP needs to be deported because illegal aliens are bad for the country

  8. Richard Guunette on Thu, 12th Dec 2019 3:27 pm 

    annoymouse needs to be banned because he is a cyber stalker with a bad obsession

  9. JuanP on Thu, 12th Dec 2019 3:46 pm 

    Graham says he won’t call any impeachment witnesses in Senate committee: ‘It’s a crock’
    Senate Judiciary Chairman Lindsey Graham, R-S.C., said Thursday that he wants the Democratic-led impeachment “sham” process to end quickly. Appearing on “America’s Newsroom” with hosts Bill Hemmer and Sandra Smith, Graham said he’d like to end the impeachment process “as soon as possible.” “I don’t want to give it any legitimacy because it’s a crock,” he said, noting that “every impeachment except this one has been conducted by outside counsel.” IMPEACHMENT MARKUP HEATS UP AS DEMS INVOKE MLK, NADLER SAYS ‘WE CANNOT RELY ON AN ELECTION’ TO OUST TRUMP Earlier this week, House Democrats announced two articles of impeachment against President Trump, alleging abuse of power and obstruction of Congress. On Thursday, the Judiciary Committee began day two of its impeachment markup and, after members debate and vote on proposed amendments to the articles, is expected to send them to the House floor for a debate and vote next week. To convict the president and remove him from office two-thirds of the Senate’s vote is required. “This is being driven by Democratic partisans, it’s being rushed, there’s no due process … Abuse of power, if you’re looking for it, my Democratic House colleagues, look in the mirror,” Graham stated. Does GOP want a quick impeachment trial or call witnesses?Video I hope that we’ll look at the record they use to impeach the president. If they get 218 votes, that will be the trial record. Let the House manager present their case. Let the president’s lawyer comment on the House case. Then vote,” he told Hemmer. “My goal is to end this as soon as possible for the good of the country because I think it’s a danger to the presidency to legitimize this,” Graham stated. “Does that mean no witnesses at all?” Hemmer asked. “I don’t need any witnesses at all. I am ready to go,” Graham replied, adding that the issue of Hunter Biden’s work in Ukraine can be addressed outside of impeachment hearings.

  10. fwsmj on Thu, 12th Dec 2019 4:44 pm 

    Richard Guenette on Thu, 12th Dec 2019 3:18 pm
    Supertard this is not a problem because the solution is simple. Supertard JuanP just chop off his peen to solve this

  11. Richard Guunette on Thu, 12th Dec 2019 4:59 pm 

    fmsjw is a sock puppet and should be banned.

  12. makati1 on Thu, 12th Dec 2019 5:53 pm 

    “Saudi Arabia encouraged local individuals to buy and hold the stock through cheap loans and a bonus-share plan, while pushing wealthy families and regional allies to buy as well.”

    Hmmm, and this is supposed to be a great IPO? They had to force their own people to buy so it could exist. LMAO!

  13. joe on Fri, 13th Dec 2019 12:34 am 

    should buy allot of jihad. also they need to pay for the upkeep of US forces now back in Saudi (since they left because of 9-11). the yemen war hax alkost bankrupted them, that has been a huge disaster all because of the Ryadh Butcher Muhammed bin Salmon.

  14. Robert Inget on Fri, 13th Dec 2019 9:26 am 

    Trump’s War on Trade turns into another unwinnable,
    endless, self immolation ‘Artless Deal’.

  15. Duncan Idaho on Fri, 13th Dec 2019 9:49 am 

    another unwinnable,
    endless, self immolation ‘Artless Deal’.

    Kind of in the spirit of the Fat Boys 6 other bankruptcies—

  16. Robert Inget on Fri, 13th Dec 2019 10:00 am 

    As everyone knows, because Trump lies like he breathes, nothing he says can be trusted.
    Putin wins on every count. Disrupt our economy, trust in fellow Americans, the Constitution, the law.

    The only investments for Monday worth holding; IMO
    Canadian energy (gas/oil/pipelines) and agriculture, (fertilizer, NTR). Chinese (and India’s) population food, energy requirements are growing exponentially.

  17. Robert Inget on Fri, 13th Dec 2019 10:06 am 

    Trump admin lifts moratorium on fracing on 1.2 mm public acres in California’

    Trump admin lifts moratorium on fracking in Calif.
    A five-year moratorium on hydraulic fracturing on 1.2 million acres of California public lands came to an end Thursday with a decision issued by the Bureau of Land Management. “The BLM’s analysis shows that there are no adverse environmental impacts due to hydraulic fracturing that cannot be alleviated,” the agency said.

  18. Robert Inget on Fri, 13th Dec 2019 10:12 am 

    Stephen Colbert
    It’s unfair to say the President is financially beholden to Russia when he just got 100% owned by a Swedish teenager.

  19. Duncan Idaho on Fri, 13th Dec 2019 10:12 am 

    Trump admin lifts moratorium on fracing on 1.2 mm public acres in California’

    Lucky, even the Greed Heads can’t make this work.
    I think the Fat Boy is just trying to piss people off..

  20. joe on Fri, 13th Dec 2019 10:19 am 

    What about the vote?

  21. JuanP on Fri, 13th Dec 2019 10:25 am 

    Delusional Davy “got a link sloppy bobby?”
    Exceptionalist, we all know you are the one here constantly making up stupid, infantile nicknames for the rest of us. Why don’t you man up and do it in your own name, coward?

  22. Duncan Idaho on Fri, 13th Dec 2019 10:31 am 

    Seems like even the Fat Boy can’t keep the Dog Track up today—

  23. supremacist muzzie jerk on Fri, 13th Dec 2019 10:47 am 

    Duncan Idaho on Fri, 13th Dec 2019 10:31 am
    Ohh ok supertard please put the lib urn on the ground gently and walk away backward slowly

    Whoa first we are graced with appearances of supertard rock and now little big brother joe too. He’s a supertard known as “the lover” of muzzies. Welcome back little big brother joe

  24. majece majece on Sat, 14th Dec 2019 2:37 am 

    Few weeks ago I managed to write a good speech about oil. On you can find some info I used for it

  25. Davy on Sat, 14th Dec 2019 4:57 am 

    well majece, just the other day I managed to write an awful speech about how everyone here is stupid, old, or old and stupid. Except for me of course. On

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