The world is about to have a record big IPO, the highest value of the company can be over 2 trillion USD

Saudi Aramco could be worth $ 1.5 trillion or a bit less after the IPO, according to analysts. However, this level is still lower than the Saudi government’s target.

According to investor research, all banks have proved difficult to accurately predict the Aramco value after an IPO. Some banks even make forecasts of the highest and lowest values ​​separated by nearly 1 trillion USD – as in the case of Bank of America (BofA).

Based on the documents in the IPO documents, some banks were more cautious when they said that Aramco could hardly reach the value of USD 2 trillion as Saudi Arabia’s Crown Prince Mohammed bin Salman publicly stated 3 years ago. .

The official IPO process started on Sunday when the applications were submitted. The shares will be traded on Riyadh in December.

Earlier, BofA had predicted that in the worst case scenario, the value of Aramco was at US $ 1.22 trillion and at the highest expected level, the number predicted to reach US $ 2.27 trillion – a gap. pretty big. At that level, it would be much larger than the capitalization of Exxon Mobil, Royal Dutch Sell and Chevron – the three largest energy companies in the world combined.

Ultimately, investors will determine the value of this company. Company President Yasir al-Rumayyan said that the number of shares sold and the value of the company will be decided after the IPO process is completed. The IPO is expected to depend heavily on local investors.

Goldman Sachs, Wall Street’s most influential bank, says investors expect Aramco to be worth between $ 1.6 trillion and $ 2.3 trillion.

“It should be noted that the value framework we provide is based on long-term analysis and it is not relevant to the company’s recent stock value situation.”

The bank calculates the value of Aramco based on the use of oil prices at $ 64.5 a barrel in 2019 and $ 60 / barrel from 2020 to 2023.

HSBC, another big bank, once thought that after the IPO, Aramco’s value will be increased to about 1.59 trillion and 2.2 trillion. Meanwhile, the French bank said that Aramco was worth exactly 1,424394 trillion USD.