Saudi Aramco Sets IPO Record: A Whopping $1.7 Trillion

Saudi Aramco set the share price for its much-anticipated IPO. The world's largest oil producer, Saudi Aramco, set the share price for the company's much-anticipated IPO. The pricing beats out the previous record holder, Alibaba Group, by a good margin, and after the offering is completed, Saudi Aramco will be the largest public company in the world by market cap. [Energy and Capital logo] Saudi Aramco Sets IPO Record: A Whopping $1.7 Trillion [Luke Burgess Photo] By [Luke Burgess]( Written Dec. 06, 2019 The world's largest oil producer, Saudi Aramco, set the share price for the company's much-anticipated IPO yesterday at 32 riyals (about US$8.50), which will raise about $25.6 billion in new capital. That would put the value of Saudi Aramco at around US$1.7 trillion and make it the largest IPO ever.[SAlogo12/191] The pricing of Saudi Aramco's IPO beats out the previous record holder, Alibaba Group, by a good margin. Alibaba raised just under $22 billion from its initial public offering in 2014. After the offering is completed, Saudi Aramco will be the largest public company in the world by market cap. Apple (NASDAQ: AAPL), currently the world's biggest public company, has a market valuation of about $1.2 trillion as we speak. $200 Oil Is Only Months Away... A $10,000 Investment Could Return $104,000 The International Maritime Organization has capped the sulfur content of global shipping fuel. Old fuel with 3.5% sulfur fuel will be outlawed. The new fuel has 0.5% sulfur, but there isn’t enough of it, and prices are moving up fast. There will be a million-barrel-a-day shortfall starting on January 1, 2020. But you must act today while there is still big money to be made. It’s called the "IMO 2020 Sulfur Cap" and you must act now. [Click here for your free report.]( The Saudi Aramco IPO has garnered a lot of media attention since Crown Prince Mohammed bin Salman first announced plans for the offering two years ago. Despite the eye-popping $1.7 trillion figure, Prince Mohammed was hoping for more. He previously talked about a $2 trillion valuation for the company. Nevertheless, the company's IPO price is at the very top of likely expectations. The company previously said it was looking to IPO between 30 and 32 riyals. It got that. Saudi Aramco said yesterday the IPO saw high demand. In the first two weeks of Aramco’s book-building period, it received orders for 5.9 billion shares. Aramco is selling a 0.5% stake specifically to private Saudi investors and 1% to institutional investors, equivalent to 2 billion shares. The company said most of the demand for its IPO yesterday was coming from Saudi wealth funds and regional financial services operators. Turn every $2 into $2,500 I just got off a conference call with the management of a little-known $150 million West Texas oil explorer. On the call, they revealed the discovery of $185 billion worth of oil under their land. This means for every one of this company’s $2 shares you buy, you’re buying $2,500 worth of oil. This is a recipe for massive windfall profits. [Here’s my full write-up and recommendation.]( The IPO is part of a larger economic overhaul in Saudi Arabia that seeks new revenue streams aside from oil and gas. Prince Mohammed said the IPO was a way for the country to raise revenue for its sovereign wealth fund, which is (ostensibly) used to develop new cities and projects across Saudi Arabia. Saudi Aramco is floating a 1.5% stake (3 billion shares) in the company itself. Trading is expected to begin on the Saudi Tadawul stock exchange in mid-December. There are no immediate plans for another listing outside of Saudi Arabia right now. But I think we can expect a U.S. listing in 2020. Would you buy Saudi Aramco stock? Let me know by tweeting me [@lukemburgess](. Until next time, [Luke Burgess Signature] Luke Burgess [[follow basic]@Lukemburgess]( As an editor at Energy and Capital, Luke’s analysis and market research reach hundreds of thousands of investors every day. Luke is also a contributing editor of Angel Publishing’s Bubble and Bust Report newsletter. There, he helps investors in leveraging the future supply-demand imbalance that he believes could be key to a cyclical upswing in the hard asset markets. For more on Luke, go to his [editor’s page](. Cannabis, Bipartisanship, and Banking Mainstream media leads us to believe partisanship is killing our democracy. But folks, it couldn’t be farther from the truth. Many of Congress’ major votes this year were actually passed with both Republican and Democratic support. We get more stuff done when we’re united. In fact, the SAFE Banking Act was passed with bipartisan support just a few weeks ago. The bill supports legal marijuana-related businesses in accessing banking systems. This is huge. For one, dispensaries would be allowed to deposit their overflowing cash once stored in a duffel bag to the safety of a bank. No more runs to the ATM for customers. Once the president signs the bill, and he will, there will be a historic transfer of wealth. Billions upon billions of new investment dollars will be unleashed and could translate into once-in-a-lifetime profits. This bill will reach Trump’s desk in the next few weeks. [Click here now to find out how you can cash in on this before the bill is signed.]( Enjoy reading this article? [Click here]( to like it and receive similar articles to read! 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