The final stages of preparations have been reached by Aramco for their initial public offering which has been anticipated a lot as it officially announced that it is going to list its shares on Tadawul exchange.
Its chairman has said that this is the apt time and opportunity for their new investors to get the benefits of the ability of Aramco to achieve value and further boost it for the long term.
The company has not given much detail however it can be said that this news is being welcomed after the many months of uncertainty which preceded this news. In its announcement there was no information regarding the actual date of when the shares are going to be floated or about the number or the price it is offering its shares on.
Meanwhile, there have been reports that the valuation which the Crown Prince Mohammed is aiming to achieve for Aramco which is $2 trillion might prove to be impossible to achieve. It has been reported that banks which have been arranging the deal have sent their research to the prospective investors and have said that the company might even be worth less than an amount of $1.5 trillion.
Further, as per the reports and the investors who have seen this research, the bank itself has had difficulties in the valuation of the company. The banks have been cautious has they put the valuation in the range of $1.22 to $2.27 trillion.
However, a few have noted that Riyadh has been accepting the possibility that the valuation might not reach $2 trillion. The average range is expected to be in the range of $1.6 billion and $1.8 trillion.