On Friday, the 8th of November 2019, expressing a sheer caution over an upcoming Saudi Aramco IPO in the Kingdom’s domestic market, President of Japan’s largest refiner, JXTM Holdings told that a majority of investment companies of Japan, the world’s third-largest economy, would unlikely to bank on a high-profile Aramco IPO as it became increasingly difficult to evaluate the Saudi state-owned oil giant’s precise market valuation over the narratives of a lower crude oil price.
In point of fact, latest downbeat comments had added further strains on the Initial Public Offering (IPO) of Saudi Aramco, as Japanese companies would likely to turn a deaf ear to Saudi crown prince Mohammed bin Salman’s planned escape of the Kingdom’s economy from an oil addiction over the narratives of a future which might heavily cash on renewable energies, eradicating demands of fossil fuels.
Although, a Saudi Aramco official told earlier last week that the Middle-east oil giant, the world’s most profitable company according to an unaudited claim of the company executives, would be looking to a valuation of 1.5 trillion, sources had unveiled on condition of anonymity on Friday (November 8th) that Aramco might raise a figure between $20 billion to $40 billion, while a valuation above $25 billion would break 2014’s record NYSE-listing of Chinese e-commerce giant Alibaba Group Holdings.
Meanwhile, adding that Japanese would unlikely to invest on Saudi Aramco IPO, JXTG Holdings’ President, Tsutomu Sugimori said in an earnings’ briefing on Friday (November 8th), “Japanese companies have stakeholders and they need good reasons to explain to shareholders why they would make such hefty investments and we need to do strict due diligence. ”