Contrary to what Mohammed bin Salman wishes .. Sources: Aramco valuation of two trillion dollars is illogical

Sources linked to the Saudi Aramco IPO said the company's valuation of $ 2 trillion was high and illogical, the US Morning Star reported.

Trillion dollars is the figure Saudi Crown Prince Mohammed bin Salman wishes, the website said.

The sources said that the logical figure for the assessment is in the range of 1.5 trillion dollars, which is 25% less than the evaluation expected by the Crown Prince.

Mohammed bin Salman's target has already faced some resistance from company executives working on the planned offer, who argued that the $ 1.5 trillion was a more realistic assessment.

He says Aramco is in the final stages of preparing to list on the Saudi bourse, while the government is pursuing a major part of the crown prince's economic reform program.

Aramco's assessment is critical to attracting investors and ensuring that as much money as possible is raised to fund Mohammed bin Salman's economic plan.

Rating downgrade
Saudi Arabia is seeking to sell about 2 percent of Aramco through a local listing for $ 40 billion. This domestic listing is expected to be followed by further selling of stocks internationally. Riyadh aims to raise $ 100 billion from the sale of 5% of the Saudi oil giant.

The Arabic version of the IPO prospectus for investors may be released on October 25, while the English version for a wider market will be released on October 27, sources said.

Informed sources expected that the board of directors of the company "Aramco" during the next week, the green light for the implementation of the initial public offering of part of the shares of the company, according to the German news agency quoted Bloomberg, citing Bloomberg.

According to Bloomberg, the board of directors of the company plans to hold a meeting with the IPO advisors on October 17, where the company will assess the market situation and respond to investors with the offers it has organized during the last period on the proposed offering.

A few days ago, Fitch downgraded Aramco to A, days after it downgraded the kingdom. The cut followed last month's attacks on two production facilities belonging to the national oil giant, which led to a brief halt of more than half of the company's oil production.

On Wednesday, Aramco Chief Executive Amin al-Nasser said there would be no impact on plans to list the oil giant after attacks on two of its facilities last month.