Saudi Aramco could be valued at $2 trillion, making the Saudi Aramco IPO worth a massive $100 billion. That will make it the biggest IPO ever once the company goes public.
But the media is overlooking one key aspect of the Aramco IPO and is instead only focusing on the deal’s size.
Even though Saudi Arabia is only selling a 5% stake in the company, it will still potentially raise $100 billion. That’s more than four times the size of the current record set by Alibaba Group Holding Ltd. (NYSE: BABA) and its $25 billion 2014 IPO.
But Money Morning Global Energy Strategist Dr. Kent Moors says the valuation isn’t the only thing that ‘makes the Aramco IPO uniquely important in the history of stock markets.’
This post was published at Wall Street Examiner on June 30, 2017.