Ipo Saudi Aramco, it goes towards valuation from 1,600-1,800 billion dollars

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Saudi Arabia is ready to seek a compromise on the evaluation of Saudi Aramco, the national oil company that is on its way to a stock market debut with a gigantic size listing. The Kingdom, writes Bloomberg, is willing to review the evaluation target a 1,600-1,800 billion dollars, giving up the goal of 2 trillion dollars declared long ago by Prince Mohammed bin Salman.

The downsizing should not prevent the IPO, which is part of the Vision 2020 program for the diversification of the Saudi economy, from breaking any collection records and undermining the 25 billion of the listing of the Chinese e-commerce group Alibaba in 2014. Saudi Aramco is considering to reinforce the dividend for the next year by another 5 billion, bringing it to a total of 80 billion dollars.

The turning point in the Saudi economy
The IPO marks one of the main turning points of the Saudi economy from the 1970s to today. Aramco, today able to affect the 10% of global oil production, is the backbone of the socio-economic stability of Saudi Arabia. The hypothesis of a stock exchange debut emerged for the first time in 2016, except to be postponed on several occasions due to investors' doubts about the maxi-valuation of 2 thousand billion dollars claimed by bin Salman.

The ambitious targets of the prince, however, are not the only obstacles on the way to debut on the stock exchange. Among the other unknown factors, Saudi Aramco will also have to face the strengthening of movements against climate change and the risks of a lower profitability of its core business. The company will unveil the final details of the transaction on 3 November, even if at the moment it has already emerged that the dividend will not be changed until 2024.