but now the Saudis have been forced to reduce the value of the Saudi Aramco IPO significantly.
This is relatively immaterial given what will determine the market cap of the company is the share price investors are willing to pay once the shares are freely trading on the Tadawul.
A second goal of the IPO was to gain significant international investment in Saudi Aramco......but international interest has been tepid at best. Saudi Aramco has canceled traveling roadshows sent to Asia, Europe and North America to promote the IPO, and now is targeting local Saudi billionaires and retail investors. The Saudi bank is even offering special loans to Saudis to enable them to buy stock in Saudi Aramco.
It was never stated that a goal was to gain “significant international investment” for the initial IPO on the Tadawul. As it stands 30% of the shares are offered to individual investors who are Saudi citizens….this was done to assuage the fears that many of the royal family had regarding de-Sauditizing their reserves completely. The other 1% will easily be taken up by the group of international banks that formed the IPO book (they are guaranteed a percent) and large investment banks/firms within Saudi Arabia. At this point in time, they have no need to seek large foreign investment. Given Aramco has stated time and again that their goal is 5% sale eventually, that leaves 3.5% that can be sold at some point through several international listings which they have said they are still considering.
A third goal of the Saudi Aramco IPO was to get the company listed on a major international stock exchange in New York or London or a similar prestigious bourse in the west.
Did they say anywhere that they are not going to eventually list on a foreign exchange? Did you see that statement anywhere from Aramco or the government? On the contrary, they said just last week that they are still considering when the appropriate time is to list on London, Japan, Singapore etc. All along the Saudis have stated their sale of shares would be done in parts with the first listing in Saudi Arabia, they haven’t changed that tune from day one.
Saudi Aramco's inability to get their IPO listed on a western stock exchange makes the IPO much less appealing to international investors because investors see there is a lack of transparency in an offering done only on a teeny tiny stock exchange in Saudi Arabia that is very close to the royal family which also controls Saudi Aramco.
You are full of it. They didn’t actually issue a prospectus anywhere outside of the Tadawul so there was not “an inability to get their IPO listed on a western stock exchange” ….they didn’t attempt that yet so they couldn’t have somehow failed at it. As to transparency, I ask you once again to read the prospectus…..there is absolutely every last bit of transparency that you would see anywhere else. In other words, you are just making crap up which unfortunately seems to be your modus operandi. International investment banks are worried about several things (oil price, security issues and how much upside there will be to the stock price). Investment banks want the most bang for the buck, they will invest in large companies that have a guaranteed dividend that will likely grow (such as Aramco) but they also want the sizzle with the steak which is an ever-increasing share price. If they think the company is well valued at the time of IPO there is less chance of them seeing any immediate upside given the current float is low. That drives their investment decision more than most things. Listing a small percentage on the Tadawul initially should work well for Aramco in the future given it will raise capital and will allow international investment banks to better understand the company prior to lising on one of the main exchanges.
All of this is turning out just as I predicted.
Give it a break, please…on the very first page you claimed the IPO had been canceled completely. You continued down that line of reasoning (with zero proof) for some time. Then you continued to demonstrate a complete lack of understanding regarding disclosure issues, IPO procedures, etc.at the same time as berating others about their apparent lack of understanding (based on your own incorrect viewpoints). Yet somehow you want to be proud of all the stupidity you have demonstrated?
We are all born ignorant, but one must work hard to remain stupid.
Benjamin Franklin