International Business Times

Posted: 4 December 2019

How Much Is Aramco Worth? Questions Over Valuation Rise as IPO Approaches

 

The Saudis have said the offering is part of a wider strategy to diversify its economy away from a reliance on oil. But some analysts say the IPO will not help to accomplish that task.

“Just selling a 1.5% stake in an oil company is not really going to achieve an enormous amount,” said Charles Hollis, director at intelligence consultancy Falanx Assynt.

Others are questioning Saudi Aramco’s true value.

A survey of 31 international asset managers revealed that majority of them think Saudi Aramco is overvalued — by as much as 35%.

The survey, conducted by brokerage house Bernstein and reported by Fortune, suggested Saudi Aramco should trade at an average valuation of about $1.26 trillion.