Saudi Saudi Aramco: A $2Trillion Delay

Saudi Aramco, officially known as the Saudi Arabian Oil Company is the sixth largest company by revenue and according to Bloomberg the most profitable company in the world. As of 2016, Saudi Aramco made plans for a 3-5% float IPO with Crown Prince Mohammed bin Salman claiming a $2Trillion total valuation- something which has led to significant controversy and delay.

As of 10/17/2019 Saudi Aramco’s now-globally famous IPO has been delayed- again, with some early reports saying it could be delayed for up of a month this time around due to the unmet target valuation set by Prince Mohammed, with analysts from over 20-banks pegging a valuation closer to $1.3Trillion. Other news reports however mention the reasoning more likely is due to recent turmoil between Iran and Saudi Arabia.

On Sept. 14 multiple missiles struck Aramco’s Oil Field and Abqaiq- the largest oil processing facility in the world. This attack singlehandedly cut 6% of the global output of crude production, or approximately 6 million barrels. These types of attacks highlight the tensions between countries and how they affect key industries- leading many investors to speculate that further attacks are possible and could significantly damage Aramco’s valuation, and revenue.

At the $2Trillion valuation Crown Prince Mohammed Bin Salman is seeking, it is expected that the Saudi Arabian government would be able to safely generate up of $100Billion, should they sell enough shares with this increasing based on available float.

We believe at Rising Sun Holdings, Inc that Saudi Aramco will IPO within the next 2-3 months and at a valuation closer to $1.5Trillion with the goal of a 1-year performance marker raising valuations to $2Trillion and further allowing the addition of additional float percentages by Aramco in other international exchanges such as Tokyo, London and more. Furthermore, we believe that as much as 10-15% of Saudi Aramco will be available globally by 2021 potentially generating up of $300B if the company sells shares at its target valuation of $2Trillion.

Dr. Ranga Chelva Krishna: CEO RSHINC