A long way to go for Aramco
The successful initial domestic listing of Saudi Aramco cannot disguise potential challenges—not least security and geopolitical threats—facing the IPO further down the line
Oil producing heavyweight Saudi Aramco auctioned an additional 450mn shares on 12 January via a greenshoe option— the provision in an underwriting agreement that grants the underwriter the right to sell investors more shares than initially planned by the issuer if the demand for a security issue proves higher than expected. The move drove up the value of its December 2019 IPO, already a world record, to $29.4bn for 1.725pc of the company sold. Yet the spectacular success of the auction, which surprised many observers, has been clouded by spiralling regional tensions which drove Aramco’s share price down in early January 2020, even as the value of international oil companies (IOCs) briefly s
Also in this section
18 April 2024
The Norwegian energy company is concentrating its efforts on specific regions and assets that meet strict cost and carbon criteria
17 April 2024
Uzbekistan and Kazakhstan provide opportunities after Europe turns it back, while also offering another gateway to China
16 April 2024
Commentators need to shake off the myths of the past, with rising oil prices a boon for US economy
15 April 2024
Though hampered by methane concerns, US LNG has a crucial role to play for European and Asian energy security, US economic needs and the energy transition drive