Saudi Aramco lists RIL investment, expansion in India in monster IPO prospectus

Agencies
November 11, 2019

Riyadh, Nov 11: Saudi Aramco launched has its prospectus for the worlds biggest IPO with a potential largest ever company valuation of estimates ranging wildly from $1.2-2.3 trillion, with an India angle-acquiring 20 per cent in Reliance Industries Limited (RIL) oil to chemicals business and an expansion of its upstream business in high growth markets.

In the 658 page prospectus launched on Sunday, Saudi Aramco highlighted its proposed investments in RIL in the column for proposed acquisitions

"The Company has recently entered into non-binding agreements regarding the expansion of its downstream business in Asia, including entering into a non-binding letter of intent with Reliance Industries Limited on August 12, 2019 to purchase a 20 per cent stake in its oil to chemicals division," it said.

In addition, Aramco will be expanding into India among the high growth markets as a key growth strategy.

"Furthermore, the Company intends to enhance its domestic and global marketing businesses to support the position of its upstream business in key, high-growth geographies, including China, India and Southeast Asia, which are integral to the Company's existing business and future expansion strategy."

Saudi Aramco has issued the prospectus for its initial public offering (IPO) on the Saudi Stock Exchange (Tadawul).

Saudi Aramco, the world's largest integrated oil and gas company, is wholly owned by the government of the Kingdom of Saudi Arabia. It is the most profitable company in the world and its valuation at the upper end of the range of $2 trillion which Crown Prince Mohammed bin Salman has been targeting to be the double that of Microsoft, the most valuable company in the world and seven times that of Exxon Mobile, the most valuable oil company.

The largest IPO has been $25 billion and the Aramco IPO size would depend on the number of shares and price.

The company's crude oil production accounted for approximately one in every eight barrels of crude oil produced globally from 2016G to 2018G.

Aramco said that it has high operating cash flow, Free Cash Flow, EBIT, EBITDA and Return on Average Capital Employed (ROACE) than each of the five major international oil companies -- collectively, the "Five Major IOCs", comprising ExxonMobil, Shell, Chevron, Total and BP.

The prospectus also said that it has a lower gearing (ratio of net debt (total borrowings less cash and cash equivalents) to net debt plus total equity) than each of the Five Major IOCs.

Amin H. Nasser, President and CCEO of Saudi Aramco, said: "Saudi Aramco's vision is to be the world's pre-eminent integrated energy and chemicals company. Over the last three years, we were responsible for one in every eight barrels of crude oil produced globally and our proved liquids reserves, at the end of 2018, were five times larger than the combined proved liquid reserves of the Five Major IOCs. We are a steadfast contributor to the world's energy security."

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News Network
January 12,2020

Tehran, Jan 12: Iranian police dispersed students chanting “radical” slogans during a Saturday gathering in Tehran to honour the 176 people killed when an Ukrainian airliner was mistakenly shot down, Fars news agency reported.

News agency correspondents said hundreds of students gathered early in the evening at Amir Kabir University, in downtown Tehran, to pay respects to those killed in the air disaster. The tribute later turned into an angry demonstration.

The students chanted slogans denouncing "liars" and demanded the resignation and prosecution of those responsible for downing the plane and allegedly covering up the accidental action.

Iran said Saturday that the Ukraine International Airlines Boeing 737 was “unintentionally” shot down on Wednesday shortly after taking off from Tehran's main airport. All 176 people on board died, mostly Iranians and Canadians, many of whom were students.

Fars, which is close to conservatives, said the protesting students chanted “destructive” and “radical” slogans. The news agency said some of the students tore down posters of Qasem Soleimani, the Iranian general killed on January 3 in a US drone strike on Baghdad.

Fars published pictures of demonstrators gathered around a ring of candles during the tribute and a picture of a torn poster bearing the image of a smiling Soleimani. It said that police "dispersed" them as they left the university and blocked streets, causing a traffic jam.

In an extremely unusual move, state television mentioned the protest, reporting that the students shouted "anti-regime" slogans.

A video purportedly of the protest circulated online showing police firing tear gas at protesters and a man getting up after apparently being hit in the leg by a projectile. It was not possible to verify the location of the video, or when it was filmed.

Iran's acknowledgement on Saturday that the plane had been shot down in error came after officials had for days categorically denied Western claims that it had been struck by a missile. The aerospace commander of Iran's Revolutionary Guards accepted full responsibility.

But Brigadier General Amirali Hajizadeh said the missile operator acted independently, shooting down the Boeing 737 after mistaking it for a "cruise missile".

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Agencies
July 26,2020

Jeddah, Jul 26: The city of Makkah is opening its arms again to welcome pilgrims for the annual Hajj — although only a handful compared with previous years.

Because of the COVID-19 pandemic, this year’s event is limited to about 1,000 pilgrims, all from inside Saudi Arabia, about 700 of whom are expatriates.

Abdullah Al-Kathiri, an Emirati and a recovered COVID-19 patient, postponed his pilgrimage last year because it coincided with his wedding plans. “I’ve heard from many who’ve performed the pilgrimage in past years that it was always a smooth process, even with the massive numbers,” he said. “So you could imagine how it would be with the limited number of pilgrims this year. Surely it will be a great experience.”

Khadija, a Bulgarian expatriate, was overcome with tears when she heard she would be performing Hajj this year. “I didn’t expect they’d accept,” she said. “I’m sure this year’s Hajj will be an exceptional one in all respects.”

Dr. Haifa Yousef Hamdoon, a Tunisian physician in Qassim, is another who did not expect to be accepted because of the low numbers this year. “When I received confirmation of my request, I was overjoyed and couldn’t believe it,” she said.

Mu’taz Mohamed, a Sudanese pilgrim who also lives in Qassim region, praised the preventive and precautionary health measures taken in order to ensure his safety and that of other pilgrims, to enable them to perform the rituals safely.

After completing their arrival procedures, the pilgrims were taken to their accommodation in Makkah, supervised by the Ministry of Hajj and Umrah. They will stay there for four days before beginning their pilgrimage on July 30.

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News Network
June 30,2020

Dubai, June 30: The United Arab Emirates is all set to reopen mosques and other places of worship at 30 per cent capacity from July 1.

However, Friday prayers will remain suspended in the country, said Saif Al Dhaheri, Spokesperson for the National Crisis & Emergency Management Authority (NCEMA) during a virtual press briefing on Monday.

The official said certain mosques in industrial areas, labor residential areas, shopping malls and public parks will remain closed until further notice.

He said health authorities already conducted Covid-19 tests for Imams and workers serving at the mosque to ensure health and safety of the worshippers.

Al Dhaheri also spelt out guidelines that worship centres have to follow to welcome worshippers.

A distance of three metres should be observed between each worshippers and no handshakes are allowed. Worshippers will have to perform ablutions at home. People should bring their own personal copies of Holy Quran or read from digital copies. It is also mandatory for all worshippers to download and activate contract tracing app AlHosn.

"We urge the public to cooperate by following precautionary measures including social distancing. Children under 12 years old, the elderly as well as individuals with chronic diseases should avoid going to mosques," said the official.

The UAE first announced the suspension of public prayers in all places of worship on March 16, which was extended until further notice on April 9.

As Khaleej Times reported, places of worship had been preparing to reopen since the last few weeks by sanitizing parking lots and outdoor areas, entrances, main prayer halls and ablution areas.

The spokesperson also announced that the Private and commercial boat trips and water sports will be allowed to operate at reduced capacity of 50 per cent but by following precautionary measures.

The total number of recovered cases of Coronavirus (Covid-19) in the UAE has reached 37,076 with 665 cases recovered today after receiving treatment. Since the beginning of June, UAE has had a daily recovery average of 660 cases, said Dr. Amna Al Shamsi, Spokesperson for the UAE government.

Guidelines

1. Maintain a distance of 3 metres between worshippers.

2. No handshakes allowed.

3. Ablutions must be performed at home.

4. To read the Holy Quran, worshippers must bring their own copies.

5. All worshippers must download and activate contact tracing app AlHosn

6. People in vulnerable categories like those with chronic diseases and the elderly must not visit the mosques.

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