Elite Capital International – Aramco IPO Update Part 1 – The Players

After three years of planning and several false starts, Saudi Arabia is in the final stages of preparing the much-hyped initial public offering of state-owned oil firm Saudi Aramco.
By: Elite Capital International Ltd
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CENTRAL, Hong Kong - Nov. 7, 2019 - PRLog -- The IPO was formally announced this week, with the aim of making its debut on the Kingdom's Tadawul stock market by December.

Aramco is looking to sell just 1% to 2% of itself on Riyadh's exchange, but this would still make it the world's largest ever flotation worth more than $20 billion. An additional overseas listing may follow, with New York, London and Singapore all vying for the lucrative mandate.

The IPO is a central pillar of the reform program of Crown Prince Mohammed bin Salman (MBS). (https://www.wsj.com/articles/aramco-ipo-prospectus-due-to-be-published-before-month-end-11570572687) He believes Aramco is valued at $2 trillion, (https://www.marketwatch.com/story/heres-what-investors-need-to-know-about-the-long-awaited-saudi-aramco-ipo-2019-11-01?siteid=yhoof2&yptr=yahoo) although several analysts and bankers have placed its value at closer to between $1.3 trillion and $1.5 trillion.

These are some of the key points investors need to know:

The players

Saudi Arabia announced a series of government changes in August in preparation of the planned IPO of Aramco.

Yasir Al-Rumayyan: Chairman of Aramco. He is also head of the Public Investment Fund (PIF), Saudi's powerful $320 billion sovereign-wealth fund. A close confidante of MBS, Al-Rumayyan is also chairman of Ma'aden, the state mining company which is 65% owned by PIF. Mining is one of the key sectors MBS wants to develop as part of its economic reforms. In addition, Al-Rumayyan sits on the board of ride-hailing app Uber Technologies and Japanese multinational SoftBank Group.

Prince Abdulaziz bin Salman: Energy Minister. The crown prince's older half-brother was appointed to the role, replacing Khalid Al-Falih who had previously overseen a $427 billion 10-year plan for Saudi's industrial sector.

Bandar Al-Khorayef: Head of the Ministry of Industry and Mineral Resources. The Saudi government placed Al-Khorayef, a member of the board of directors of Saudi conglomerate Al-Khorayef Group, in the newly created role after the new ministry of industry and mineral resources was separated from the vast energy ministry. It will operate as an independent entity from 1 January 2020.

Fahd bin Mohammed Al-Essa: Head of the royal court, a powerful gatekeeper position in the absolute monarchy. He previously served in the Defense Ministry.

Amin Nasser: Chief Executive of Aramco. He has worked for the oil group for 30 years.

Part 2 – The Numbers Coming Next Week. To find out more, contact us at info@elitecapitalinternational.com or visit www.elitecapitalinternational.com to see how we can secure your financial future.

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Benjamin Hoi
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