Investopedia defines Initial
Public Offering as “An initial public offering (IPO) is the first time that the
stock of a private
company is offered to
the public. IPOs are often issued by smaller, younger companies seeking capital
to expand, but they can also be done by large privately
owned companies
looking to become publicly traded.”.
Aramco has decided to go for IPO
(valuation is assumed to be around USD 2 Trillion).
Offering Aramco shares is like i am offering part of my revenue stream (i.e. Income) for listing. Why Should I do so?
I will do it because i know there is going to be an end in my revenue stream as i am 73 years old.
Aramco according to their website
“Saudi Aramco is the state-owned oil company of the Kingdom of Saudi Arabia. We
are the world’s top exporter of crude oil and natural gas liquids.”.
The obvious question, Aramco is
not a small company seeking capital to expand. One of the reasons for sale of shares is attributed in “the Interest of more transparency” according to Prince Salman.
Is Aramco listing because?
Oil is no more going to be the
controlling factor over world economy in coming decades.
Growth of Electric Vehicles.
Better to cash out.
Reference:
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