Aramco: how do you discount for drones?

Aramco_fire_PA_230x150
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 ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.