Global funds to snub Aramco after IPO
Saudi Arabia’s listing of its prized asset, oil producer Saudi Aramco, was supposed to lure international investors into the kingdom. On that score, the deal will be a failure as pricing was set so high that only locals were interested. Now it seems global funds will have little reason to buy the shares once they start trading. Sam Kerr reports.
Pricing on the Saudi Aramco IPO, which is set to be listed on December 4, has made the stock an uncompetitive asset compared to its peers.Its dividend of roughly 4.5%, which Saudi Arabia has guaranteed, is less than oil majors Shell and ExxonMobil pay and is a ...
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