It was January 2016, the markets were trying to absorb the shocks from the Fed’s and trying to avoid a bear market from beginning. It was around that time when the Saudi Deputy Crown Prince Mohammed Bin Salman went Public and announced his intent to list Aramco Ltd. This was big news which stunned the world. Everybody knew it was a historic step. The mere thought of listing shares of Aramco made public imagine the intensity of the IPO. Everyone knew that it would be the biggest IPO of all time. The reserves of the company was 10 times larger than those Exxon Mobil and the likes. All this after paying almost 90% of its profit to the Saudi government for crying out loud!
Everybody wanted to see this IPO through. Saudi prince wish to list 5% of Aramco’s shares and that sent ripples across the world. However it got people talking. Crude in January 16 reached as low as $27 per barrel. People thought that Saudi is taking this step to raise funds to meet its cash needs but reality was different from the perceptions. Continue reading Aramco – The Giant in a tiny cage