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08 December 2019
BUSINESS

Saudi Aramco to be worth more than $2 trillion soon, says energy minister

The Kingdom is trying to support oil prices before trading starts next week.

Prince Abdulaziz bin Salman, Saudi Arabia's Energy Minister/Bloomberg


The Saudi Arabian Energy Minister, Prince Abdulaziz bin Salman, said that Saudi Aramco will probably soon exceed the $2 trillion valuation targeted by Crown Prince Mohammed bin Salman, reported Bloomberg.

Prince Abdulaziz said the successful initial public offering (IPO) was the proudest day of his career so far and the float had proved many critics of deal wrong.

“I will not call them by names, but I think they will like not to have written the things they have written, Saudi Aramco will be higher than the $2 trillion and they can bet that this will happen,” said Prince Abdulaziz.

The state-owned oil giant set the final price of its shares at SAR 32 ($8.53), valuing the world’s most profitable company at $1.7 trillion and it received total bids of $119 billion.

The Crown Prince Mohammed has long insisted on a $2 trillion valuation, but international investors balked, saying that mis-priced Saudi Aramco versus other large oil companies.

Saudi Arabia decided to proceed with an offering to local and regional investors, described by Prince Abdulaziz today as ‘family and friends’.

The Saudi energy minister that the Kingdom is cutting production more than required by its OPEC quota.

 


RELATED STORIES: Prince Abdulaziz bin Salman Saudi Aramco IPO

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