Bloomberg: Aramco's value may be less than $ 1.5 trillion

The value of the company may be $ 1.5 trillion, perhaps less, according to research sent by banks involved in the Saudi Aramco IPO on Sunday to potential investors. This is far below the target price set by the Kingdom.

The research, according to a group of investors who reviewed it, suggests banks are struggling to determine the exact value of Aramco, Bloomberg News reported.

Some banks offered a huge range - up to $ 1 trillion in the case of Bank of America - among the highest and lowest valuations of the company.

According to research reports conducted before the company's initial public offering, which banks have used to attract interest in stock sales, Riyadh may be struggling to achieve a $ 2 trillion valuation, which Saudi Crown Prince Mohammed bin Salman has said he wants in the past three years.

Bloomberg said on Saturday that Saudi Arabia would show flexibility in Aramco's assessment of the success of the company's initial public offering.

The main axis
The IPO, which is a key focus of Saudi Arabia's 2030 vision, is expected to hit record highs of more than $ 25 billion set by China 's Alibaba Group in 2015, the agency said.

"The kingdom is ready to accept less than the value that the crown prince has always insisted it deserves and is worth $ 2 trillion."

Aramco Chairman Yasser bin Othman al-Rumayyan said earlier on Sunday that Aramco's IPO was "an important step towards achieving Vision 2030."

"The opportunity to enter new shareholders and benefit from the capabilities of Aramco, as well as the government, is an opportunity," he said.

"Aramco's approval of the Capital Market Authority for the IPO means that the IPO will start officially," he said, adding that Aramco's listing on the Saudi market was proof of its international standing.

"Within ten days, analysts' reports will be drawn up to determine the price range of Aramco's shares," he added.

For his part, the company's CEO Amin Nasser that Aramco "is the most stable in providing energy to the world."

earnings
Al Nasser said the company is committed to distributing dividends of at least $ 75 billion annually to shareholders until 2024, stressing that the government will waive its right to dividend Aramco if necessary over the next five years to support the company.

He also said during the press conference that Aramco is focused on reducing greenhouse gases, pointing out that the company's financial base is strong and flexible because of the application of necessary controls.

The company is working - according to the CEO - to add value to shareholders despite the volatility of oil prices, pointing out that Aramco produced during the first half of this year 13.2 million barrels of oil equivalent per day.

"The equivalent oil reserves of Aramco amount to 204 billion barrels, and the company will take the public offering as a pillar in support of the national economy," Nasser said.