Saudi Aramco promotes IPO in Dubai as Kuwaiti sovereign fund disappoints


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Saudi Aramco promotes IPO in Dubai as Kuwaiti sovereign fund disappoints

On Sunday, the 24th of November 2019, leading officials from Aramco, Saudi’s state-backed oil giant and the world’s most profitable company in an unaudited basis, had met potential investors in Dubai in a bid to market its upcoming initial public offering following a meet with Kuwait sovereign fund officials to raise a whooping total of $25.6 billion at its planned $1.7 trillion IPO.

Besides, Aramco’s latest act to meet with potential investors in Dubai came as, Kuwaiti sovereign fund officials seemed to have turned a deaf ear to Aramco IPO saying it would closely review the proposal and monitor the progress before taking any further action, remarking the latest to join a string of investors who had already abandoned Aramco IPO due to Saudi Crown Prince Mohammed bin Salman’s ambitious plan to raise a sum between $1.6 trillion to $1.7 trillion, since a soaring supply glut alongside a strident debarkation of a demand concern amid a 16-month-long Sino-US trade war had raised concern over crude oil futures’ prices which usually narrate a profit-picture for Saudi Aramco.

Aside from that, industry analysts had also cautioned that the US crude futures’ price should stay above $60 per barrel for Saudi Aramco to pay off its promised dividend of $75 billion by next year, nonetheless, in the wake a withering backdrop in manufacturing sectors across the globe, US crude futures’ prices were unlikely to leave a range between $40 to $60 per barrel despite an OPEC+ pledge to curb output further, suggested industry experts.