Saudi Aramco IPO

This is going to be really popular

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Why do you reckon it’s going to be popular?

Interesting to know why it only is going to list domestically, instead of dual listing in London or New York who have higher liquidity and mature capital markets

People like oil companies, especially profitable ones

Saudi Aramco is the world’s most profitable company and biggest oil producer, with exclusive rights to pump all of the country’s vast reserves.

I wonder if listing domestically allows them to control information on the company a bit more than if they listed elsewhere :thinking:

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I expect there’s going to be a lot of demand to buy shares in ‘the world’s most profitable company’. But valuing a company like this must be a huge challenge, which makes it quite a risky investment in my opinion.

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The IPO FOMO is always strong, you might miss out on something amazing but the odds are against you, versus sticking to your existing strategies.

Great write up on Bloomberg about the new wave of IPOs and what is driving them.

https://www.bloomberg.com/graphics/2019-unprofitable-ipo-record-uber-wework-peloton/

For me this will be another wait and see. They have a very clear unfair advantage but will the company still hold up under the public eye. It also raises questions about why an IPO, what do they hope to achieve?

Even this listing will be between 1-2% of the company, with plans to list on another exchange in the future, hopefully bringing the freefloat of the company to 5%, which is extremely limited. Why exposure yourself to the disclosure requirements for such a small slice of the company?

Too many unknowns and unanswered questions for my personal liking, compound that with an industry I don’t want exposure to, it’s going to be a very hard sell for me!

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It looks like the IPO isn’t going as well as they’d hoped.

Edit

Interesting thread on this -

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