Aramco isn't the one who will be buying shares at a future IPO. The question is whether or not potential investors have issues or concerns about Aramco....and of course they do. Major investors aren't going to invest in Saudi Aramco without knowing the facts about their oil reserves and financials.
Which again they will get in the prospectus but no more than about 1-2 weeks before shares start trading. They can make a decision whether they want to invest or not but from Aramco’s perspective they have done all the work and just have to put out the prospectus (as has been said by the CEO of Aramco). Oh, I forgot you think he is lying
All that work was done years ago, before ARAMCO has delayed the IPO again and again. That work will have to be redone and updated to reflect present conditions.
At this exact moment nothing has changed, all the work that was done to value the corporation including financials, reserves, corporate governance docs etc are valid because right at this moment the corporation is exactly the same as it was 2 years ago for the purposes of valuation as the banks see it.
If they execute the SABIC deal then that would require a redo on the financials because it is a material change but reserves and corporate docs will remain intact as they are updated quarterly.
Just consider oil reserves----ARAMCO is producing about 4 billion bbls of oil per year. That means by 2021, when they now project doing the IPO, they will have produced ca. 20+ billion bbls since they first announced they would do an IPO. Obviously their oil reserve data and financial projections need to be updated before they can attempt to do an IPO again.
No, not the case. The reserve reports created by D&M and GCA are fixed in time and provide projections forward usually through the economic life of reserves. The financial valuation automatically looks at point forward, what was spent or produced prior to the prospectus being issued isn’t considered. I have seen one RTO that accepted a third party reserve report from 2 years previous simply because the changes to reserves were captured in the annual filings (in that case 51 -101). In terms of updating financials all that is required is including the last year end financials which will point out current cash on hand, debt, and past years production. If companies had to redo all the work that goes into an IPO every few months you would never see them done. IN short, all of that work that was done is directly usable whenever they decide to execute on the prospectus. And that is exactly what the CEO of Aramco has said a couple of weeks ago to the press. Oh, I forgot you think he is lying.
Second, ARAMCO recently announced they will start to develop oil reserves outside of KSA. Nowhere did ARAMCO say this would involve starting up their own foreign E & P division and purchasing foreign leases etc. It seems more likely to me that if they want to expand their operations overseas that they will move to acquire an existing foreign oil company and take over their oil reserves, just as they moved to take over SABIC when they wanted to push farther into the chemicals business.
If they go overseas they will be required to set up subsidiaries for tax purposes, just like every other NOC and you have no idea how they will enter into the oil and gas business, numerous NOC’s have entered into foreign operations by entering into bid rounds and/or farming in on existing acreage. It is a standard method. And Aramco did not move to “take over” SABIC, they are planning on buying shares in the company not acquiring the company outright which are two different things as I explained several times up thread. As I pointed out several times here, given the financial size of Aramco any company they might acquire outright would have to be worth tens of billions of dollars to make enough of a material change that it would require changes to a prospectus. There aren’t a handful of companies with that sort of value and I can’t see an example of one that would contemplate a sale to Saudi Arabia unless the offer was for some ridiculous uplift on their share price. It might happen but extremely unlikely for a number of reasons.
Your potty mouth is overflowing again. This time please press your lips tightly together before you flush and see if you can contain the leakage. Thanks.
As I said grow up