Saudi Aramco IPO prospectus projects oil demand to increase in 20 Years

13 Novembre, 2019, 13:35 | Auteur: Auguste Feret
  • A billboard displaying an advert for Aramco

The prospectus said the state giant will sell up to 0.5 per cent of its shares to individual investors while it has still not decided on the percentage for larger institutional investors.

Saudi Aramco said it would start taking bids from investors on November 17 in a highly anticipated stock offering, as it released a prospectus that did not disclose the size of the sale or the pricing range.

Crown Prince Mohammad bin Salman is seeking to sell the shares to raise billions to diversify the Saudi economy away from oil by investing in non-energy industries.

Bankers think the long-awaited IPO will value Aramco around US$1.5 trillion.

The Saudi state company said its after-tax breakeven costs for producing fields were below $10 per barrel, compared with just over $20 per barrel for the UAE, more than $40 per barrel for Russian Federation, and nearly $50 per barrel for Nigeria.

Despite trying to untangle its operations and accounts from the state, the company said that the government will dictate production decisions and could direct it to undertake projects "outside the Company's core business".

Aramco may also change its dividend policy without prior notice to its minority shareholders, it said.

Among other risk factors, the oil company - the world's largest producer - said it was vulnerable to fluctuations in commodity prices, reliance on Asian consumers, political and social unrest and terrorism.

What's more in the 658-page prospectus?

Apple prévoirait de lancer un casque de réalité augmentée en 2022
Ce n'est pas vraiment un secret, Apple travaille sur un dispositif dédié à la réalité augmentée depuis longtemps déjà. Mais bien évidemment, pour le moment, ces informations sont encore à prendre avec des pincettes.

Tesla construira son usine européenne près de Berlin
Après le Nevada, New York et la Chine, ça sera donc... l'Allemagne! " J'ai une annonce qui sera probablement bien reçue ", a-t-il déclaré après avoir reçu le Volant d'or décerné par le journal Bild , et avant de révéler le nom très attendu du pays européen victorieux.

Tesla announces plans to build Gigafactory 4 in Berlin
Elon Musk has said that the Shanghai factory will produce at least 1,000 cars per week by the end of the year, and eventually a weekly rate of 3,000 vehicles.

Based on the Kingdom's reserves, Saudi Aramco will be able to continue pumping as much as 11 million barrels a day of crude and condensate into the 2030s and possibly go as high as 13 million barrels a day in the 2040s.

The prospectus said the government will have a "statutory lockup period" for disposing of any shares after the listing for six months, and a contractual lockup period for 12 months.

Aramco does not appear to have any immediate plans to list more of the company on an worldwide exchange, although there have been talks with major exchanges in recent years. It's said that nearly 2% of the shares will be available for global investors.

Amin H. Nasser, President and CCEO of Saudi Aramco, stated: "Saudi Aramco's imaginative and prescient is to be the sector's pre-properly-known constructed-in energy and chemical substances company. Holding Aramco shares is an absolute gain", a Saudi with a twitter handle named Abdulrahman wrote.

Investors are also concerned about geopolitical risks. Saudis flooded banks with phone calls asking how to participate after Aramco announced bank mandates. The kingdom cut taxes on Aramco for a third time, revealed incentives for investors not to sell shares and is considering boosting dividends further.

Norway's sovereign wealth fund, the world's largest, does not plan to invest in Aramco, a Norwegian official told AFP.

It is unclear whether Aramco will get the $2 trillion valuation Prince Mohammed had hoped for, with investment research firm Bernstein estimating it could fall between $1.2 and $1.5 trillion.

Initial hopes for a 5 percent IPO on domestic and worldwide bourses were dashed past year when the process was halted amid debate over where to list Aramco overseas.



Former Trump admin officials push back against recruitment claims by Nikki Haley
Haley also said in every instance she dealt with the president he was truthful, listened, and was great to work with. She was asked by "Today's" Savannah Guthrie : "It's been out there, and you worked in this administration".

Ole Gunnar Solskjaer: Win over Brighton our best showing this season
The upturn in form has coincided with Anthony Martial 's return from a thigh injury and James said having the Frenchman back has given the squad a boost.

Broadway en deuil suite au décès d'une comédienne de 13 ans
La jeune fille est décédée mardi dernier, le 5 novembre , et ses obsèques ont eu lieu trois jours plus tard à New-York. Elle était en effet considérée comme la nouvelle étoile montante d'Hollywood après ses interprétations remarquées.

Rohit Sharma's pep-talk helped India win the match: Shreyas Iyer
Iyer further said that the support staff had given freedom to all the batsmen to show their intent while going out to bat. And you should feel very positive when you're batting.

Doorbell Camera Captures Meteor Lighting Up Missouri Sky
Officials have indicated that the fireball was likely the result of the Taurid meteor shower , which was at its peak late Monday . The National Weather Service could not confirm if the meteor touched down or if it burnt up in the atmosphere.

" Malaise TV, long, laborieux… " des chroniqueurs de TPMP détruisent l’émission — Mask Singer
C'est en tout cas ce qu'affirmait l'animateur sur le plateau de son émission " Touche pas à mon poste " sur C8. Depuis quelques jours, une nouvelle émission de TF1 est devenue l'attraction des téléspectateurs.

Red Bull et Toro Rosso confirment leurs pilotes pour 2020 — Officiel
Le Français Pierre Gasly sera quant à lui à nouveau associé au Russe Daniil Kvyat chez Torro Rosso. Toro Rosso progresse année après année et c'est fantastique de faire partie de l'aventure.

Algérie: début du procès de 42 porteurs de drapeaux berbères
Ces deniers, jugés le mardi 22 octobre, écopent de six (6) mois de prison ferme, assortis de 20.000 Dinars d'amende. En tout, ce ne sont pas moins de 70 avocats qui se sont réunis pour la défense de ces détenus; mais en vain.

Disney+ Has Technical Issues on Launch Day | Disney Plus
Disney titles on other streaming services, like Netflix, will be removed on January 1, 2020, and only be viewable on Disney +. I was surprised that Disney made a decision to remaster "The Black Cauldron", an obscure 1985 Disney animated film, in 4K.

John Legend Named People Magazine’s 2019 Sexiest Man Alive
She's like, legit proud of me. "I have fulfilled my dream of having boned People's sexiest man alive! an honour!" she wrote . The singer is the 34th celebrity to receive the honor since the annual campaign started in 1985.