'Risk of terror attacks': Saudi Aramco prospectus gives few details on IPO size

News Network
November 10, 2019

Dubai, Nov 10: Saudi state oil giant Aramco will sell 0.5 per cent of its shares to individual retail investors and the government will have a lockup period of a year on further share sales after the initial public offering, its prospectus said on Saturday.

The more than 600-page prospectus did not include details of how much of the company would be floated in total or of any commitments from anchor investors.

Sources have said the company could sell 1 per cent-2 per cent on the Saudi stock market in what could be the world's largest listing.

Offering for the shares will begin on November 17, the prospectus said.

Aramco fired the starting gun on the initial public offering (IPO) on November 3 after a series of false starts. Crown Prince Mohammed bin Salman is seeking to raise billions of dollars to diversify the Saudi economy away from oil by investing in non-energy industries.

Among the risks highlighted in the prospectus were the potential for terrorist attacks and the potential for encountering antitrust legislation, as well as the right of the Saudi government to decide maximum crude output and direct Aramco to undertake projects outside its core business.

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

Aramco's oil facilities were targeted on September 14 in unprecedented attacks that temporarily shut 5.7 million barrels per day (bpd) of output - more than 5 per cent of global oil supply.

LOCKUP PERIOD

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 cannot list additional shares for a period of six months after trading starts, and will also be restricted from issuing additional shares for 12 months.

The offering for institutional investors will begin on November 17 and end on December 4, while retail investors will be able to bid for the shares from November 17 to November 28, the prospectus said.

"Aramco IPO is an opportunity that shouldnt be missed, the largest company in the world....holding aramco shares is an absolute gain", a Saudi with a twitter handle named Abdulrahman wrote.

Aramco has been in talks with Gulf and Asian sovereign wealth funds and wealthy Saudi individuals to secure top investors of the IPO, but no anchor investor is yet to formally agree to a deal.

The Russia-China Investment Fund is working to attract Chinese investors for Aramco's planned IPO, the head of Russia's RDIF sovereign wealth fund said on Thursday.

Bankers have told the Saudi government that investors will likely value the company at around USD 1.5 trillion, below the USD 2 trillion valuation touted by Prince Mohammed when he first floated the idea of an IPO nearly four years ago.

Initial hopes for a 5 per cent IPO on domestic and international bourses were dashed last year when the process was halted amid debate over where to list Aramco overseas.

Aramco said the timetable was delayed because it began a process to acquire a 70% stake in petrochemicals maker Saudi Basic Industries Corp <2010.SE>.

The prospectus said Goldman Sachs was named as stabilizing agent for the deal.

Analysts from banks working on the Riyadh bourse have projected a wide valuation range between USD 1.2 trillion to USD 2.3 trillion.

At the top valuation of USD 2 billion, Aramco could potentially raise USD 40 billion, topping the record-breaking USD 25 billion raised by Chinese e-commerce giant Alibaba in 2014.

The valuation would be almost twice that of Microsoft, currently the world's most valuable listed company, and seven times that of Exxon Mobil Corp, the biggest listed oil major by market capitalisation.

"Due to its size and likely free float, Aramco should be eligible for fast-track inclusion in both the FTSE and MSCI Emerging Market indices within 10 days of the IPO," said Dominic Bokor-Ingram, senior portfolio manager, frontier markets, Fiera Capital (Europe).

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Agencies
January 11,2020

Muscat, Jan 11: Oman's Culture and Heritage Minister, Haitham bin Tariq Al Said, took oath as country's Sultan on Saturday following the demise of Qaboos bin Said al-Said, the country's government confirmed on Saturday.

Sputnik quoted a report by sultanate's Al-Roya newspaper as saying that the new Sultan " affirmed the continuation of the country's modernisation and development in various fields."

The development comes after Qaboos bin Said, who had served as the ruler of Oman since 1970, died Friday at the age of 79.

Earlier in the day, Prime Minister Narendra Modi had condoled Qaboos's demise and remembered him as the "beacon of peace for India and the world". 

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Agencies
July 31,2020

Makkah, Jul 31: Organising this year's scaled-down hajj required "double efforts" by Saudi authorities amid the coronavirus pandemic, King Salman said Friday after being discharged from hospital following gall bladder surgery.

Only up to 10,000 people already residing in the kingdom are participating in this year's pilgrimage, compared with 2019's gathering of some 2.5 million from around the world.

"Holding the ritual in the shadow of this pandemic... required reducing the numbers of pilgrims, but it obliged various official agencies to put in double efforts," 84-year-old King Salman said in a speech read out on state television by acting media minister Majid Al-Qasabi.

"The hajj this year was restricted to a very limited number of people from multiple nationalities, ensuring the ritual was completed despite the difficult circumstances," he said.

The speech came on the occasion of Eid al-Adha, the Muslim festival of sacrifice, a day after the king left hospital following a 10-day stay for surgery to remove his gall bladder.

The hajj, which began on Wednesday, is one of the five pillars of Islam and a must for able-bodied Muslims at least once in their lifetime.

Authorities implemented the "highest health precautions" during the rituals, the king said.

Pilgrims, who were all tested for the virus, are required to wear masks and observe social distancing.

For Friday's "stoning of the devil", the last major ritual of the hajj, Saudi authorities offered the pilgrims pebbles that were sanitised to protect against the pandemic.

In a sign that its strict measures were working, the health ministry reported no coronavirus cases in the holy sites on Wednesday or Thursday.

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News Network
April 5,2020

Beirut, Apr 5: The novel coronavirus has put global trade on hold, placed half of the world population in confinement and has the potential to topple governments and reshape diplomatic relations.

The United Nations has appealed for ceasefires in all the major conflicts rocking the planet, with its chief Antonio Guterres on Friday warning "the worst is yet to come". But it remains unclear what the pandemic's impact will be on the multiple wars roiling the Middle East.

Here is an overview of the impact so far on the conflicts in Syria, Yemen, Libya and Iraq:

The COVID-19 outbreak turned into a pandemic just as a ceasefire reached by the two main foreign power brokers in Syria's nine-year-old war -- Russia and Turkey -- was taking effect.

The three million people living in the ceasefire zone, in the country's northwestern region of Idlib, had little hope the deal would hold.

Yet fears the coronavirus could spread like wildfire across the devastated country appear to have given the truce an extended lease of life.

According to the Syrian Observatory for Human Rights, the month of March saw the lowest civilian death toll since the conflict started in 2011, with 103 deaths.

The ability of the multiple administrations in Syria -- the Damascus government, the autonomous Kurdish administration in the northeast and the jihadist-led alliance that runs Idlib -- to manage the coronavirus threat is key to their credibility.

"This epidemic is a way for Damascus to show that the Syrian state is efficient and all territories should be returned under its governance," analyst Fabrice Balanche said.

However the pandemic and the global mobilisation it requires could precipitate the departure of US-led troops from Syria and neighbouring Iraq.

This in turn could create a vacuum in which the Islamic State jihadist group, still reeling from the demise of its "caliphate" a year ago, could seek to step up its attacks.

The Yemeni government and the Huthi rebels initially responded positively to the UN appeal for a ceasefire, as did neighbouring Saudi Arabia, which leads a military coalition in support of the government.

That rare glimmer of hope in the five-year-old conflict was short-lived however and last week Saudi air defences intercepted ballistic missiles over Riyadh and a border city fired by the Iran-backed rebels.

The Saudi-led coalition retaliated by striking Huthi targets in the rebel-held capital Sanaa on Monday.

Talks have repeatedly faltered but the UN envoy Martin Griffiths is holding daily consultations in a bid to clinch a nationwide ceasefire.

More flare-ups in Yemen could compound a humanitarian crisis often described as the worst in the world and invite a coronavirus outbreak of catastrophic proportions.

In a country where the health infrastructure has collapsed, where water is a rare commodity and where 24 million people require humanitarian assistance, the population fears being wiped out if a ceasefire doesn't allow for adequate aid.

"People will end up dying on the streets, bodies will be rotting in the open," said Mohammed Omar, a taxi driver in the Red Sea port city of Hodeida.

Much like Yemen, the main protagonists in the Libyan conflict initially welcomed the UN ceasefire call but swiftly resumed hostilities.

Fierce fighting has rocked the south of the capital Tripoli in recent days, suggesting the risk of a major coronavirus outbreak is not enough to make guns fall silent.

Turkey has recently played a key role in the conflict, throwing its weight behind the UN-recognised Government of National Accord.

Fabrice Balanche predicted that accelerated Western disengagement from Middle East conflicts could limit Turkish support to the GNA.

That could eventually favour forces loyal to eastern-based strongman Khalifa Haftar, who launched an assault on Tripoli one year ago and has the backing of Russia, Egypt and the United Arab Emirates.

Western countries have been hit hardest by the pandemic, which could prompt them to divert both military resources and peace-brokering capacity from foreign conflicts.

A report by the International Crisis Group said European officials had reported that efforts to secure a ceasefire in Libya were no longer receiving high-level attention due to the pandemic.

Iraq is no longer gripped by fully-fledged conflict but it remains vulnerable to an IS resurgence in some regions and its two main foreign backers are at each other's throats.

Iran and the United States are two of the countries most affected by the coronavirus but there has been no sign of any let-up in their battle for influence that has largely played out on Iraqi soil.

With most non-US troops in the coalition now gone and some bases evacuated, American personnel are now regrouped in a handful of locations in Iraq.

Washington has deployed Patriot air defence missiles, prompting fears of a fresh escalation with Tehran, whose proxies it blames for a spate of rocket attacks on bases housing US troops.

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