• 384 days Could Crypto Overtake Traditional Investment?
  • 389 days Americans Still Quitting Jobs At Record Pace
  • 391 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 394 days Is The Dollar Too Strong?
  • 394 days Big Tech Disappoints Investors on Earnings Calls
  • 395 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 397 days China Is Quietly Trying To Distance Itself From Russia
  • 397 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 401 days Crypto Investors Won Big In 2021
  • 401 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 402 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 404 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 405 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 408 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 409 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 409 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 411 days Are NFTs About To Take Over Gaming?
  • 412 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 415 days What’s Causing Inflation In The United States?
  • 416 days Intel Joins Russian Exodus as Chip Shortage Digs In
Biggest Job Gains in History, but It’s Not Enough

Biggest Job Gains in History, but It’s Not Enough

The U.S. economy added 467,000…

Could Crypto Overtake Traditional Investment?

Could Crypto Overtake Traditional Investment?

Despite recent volatility, there is…

  1. Home
  2. News
  3. Breaking News

Saudi Arabia's Richest Are Being Forced To Buy Aramco

Saudi Arabia

Saudi Arabia is pressuring wealthy nationals into taking part in Aramco’s upcoming IPO, The Financial Times reports, citing sources in the know.

The report follows another one, by Bloomberg, which also cited sources saying Riyadh had approached some of the richest families in Saudi Arabia about potentially becoming anchor investors in the listing.

Oddly enough, some of the families approached to be anchor investors - helping to ensure a successful sale in the Aramco IPO - have relatives that were part of the 2017 purge when Saudi Arabia’s leadership locked officials and businessmen in the Ritz-Carlton hotel in Riyadh in what the rulers said was an anti-corruption drive.

According to the FT sources, Riyadh’s approach was not exactly friendly. Words including “strong arm”, “coerce” and “bully” were used to describe the way Saudi Arabia’s government was trying to secure the anchor investors for what many see as the deal of the century in oil and the largest IPO ever.

One of the wealthy Saudis targeted by Riyadh as Anchor investors was Alwaleed bin Talal—a celebrity billionaire who was held at the Ritz-Carlton for three months and who, like the others detained at the hotel, was only freed after he agreed to transfer substantial financial assets to the government. To date, many of his remaining assets in the Kingdom remain frozen but, according to the FT sources, he was offered access to them if only to use them to buy into Aramco. Related: SoftBank Urges WeWork To Pause IPO Plans

It seems Riyadh is nervous about the deal of the century. Crown Prince Mohammed wants the state oil company to be valued at $2 trillion, which would mean $100 billion in proceeds from the IPO, but there are many doubts surrounding this target valuation.

The recent attacks on Saudi oil infrastructure have not helped, either. Despite the world-class assets and the fact that Saudi Aramco pumped just below 10 million bpd before the attacks - or more than the world’s top four listed oil companies combined - financial analysts and investors told Bloomberg earlier this week that the valuation of the company may not fully account for major supply disruptions like the current one.

By Irina Slav for Oilprice.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment