Materials, IPO & Equity Analyst

Venkat Ramana Nandyal

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/saudi-aramco" target="_blank" data-smartkarma-citation="entities:27317:1" rel="noopener">Saudi Aramco (131861Z AB)</a>  listing comes at the twilight of the oil industry. The company expects crude demand slowdown in the next 5-10 years, with short to mid-term demand squeezed by a slowdown in the global economy.
The company has declared dividends for the next 5 years as a sop to induce investors to subscribe to the issue. We believe IPO would sail through with commitments from foreign governments backed institutions.
Based on the dividend yields of its peers Aramco’s value could be between US$1.19T and US$1.81T, with a valuation of US$1.37 based on peer group average.
If the company pulls off much-touted US$2 trillion valuations, we believe a rerating of other major oil stocks would be on cards.

Saudi Aramco (131861Z AB)  listing comes at the twilight of the oil industry. The company expects crude demand slowdown in the next 5-10 years, with short to mid-term demand squeezed by a slowdown in the global economy.
The company has declared dividends for the next 5 years as a sop to induce investors to subscribe to the issue. We believe IPO would sail through with commitments from foreign governments backed institutions.
Based on the dividend yields of its peers Aramco’s value could be between US$1.19T and US$1.81T, with a valuation of US$1.37 based on peer group average.
If the company pulls off much-touted US$2 trillion valuations, we believe a rerating of other major oil stocks would be on cards.     

Saudi Aramco IPO: A First Look At Valuation of Largest IPO Ever