Dubai - Decypha: The market capital of oil company Saudi Aramco is expected to reach a total value between $1 billion and $1.5 billion, according to the majority of participants in a survey conducted by EFG Hermes.
Aramco’s initial public offering (IPOs) is approaching and expected in 2018, as the Saudi government plans to issue 5% of the company for subscription, at a time when the Kingdom is dealing with the drop in oil prices compared to its levels in 2014.
The survey was conducted on the sidelines of the opening session of the One on One 2017 Conference in Dubai, as EFG Hermes polled 510 international fund managers and institutional investors from 260 institutions with aggregate assets under management exceeding $10 trillion.
Around 36% of participants expected an evaluation of less than $1 billion for the IPO value, while 25% forecast it will exceed $1.5 billion.
