Aramco: how do you discount for drones?

By Sam Kerr
17 Sep 2019

It isn't often that equity investors are asked to buy assets subjected to physical attack. The drone strikes on Saudi Arabia’s Abqaiq and Khurais oil facilities on Saturday could lead to Aramco demanding a big discount on any upcoming listing. The IPO market has suffered its fair share of geopolitical tumult of late, but this long and keenly anticipated deal could wind up being the riskiest of them all.

A Yemeni Houthi group has claimed responsibility for the drone attacks, which cut Saudi oil production in half, but US president Donald Trump has blamed Iran for the assault.

Tensions between the sides involved in Yemen’s civil war, and between the US and Iran, are rising, increasing fears ...

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