New Aramco chair bears small plus and bigger minus 3 Sep 2019 The Saudi oil giant has appointed the boss of its sovereign wealth fund to head its board. Potential IPO investors might appreciate Aramco being distanced from the energy ministry. They may not be so keen that the new appointee looks even closer to the kingdom’s crown prince.
Listing Aramco in Tokyo has logic on its side 29 Aug 2019 In its lengthy quest to decide where and when it will list its shares, the Saudi oil giant may be leaning towards Japan. Tokyo’s reliance on Riyadh for oil supplies has always made it a valid choice. With other international bourses out of the picture, that may be reason enough.
Viewsroom: WeWork unfurls the red flags 15 Aug 2019 The shared-office provider’s long-awaited IPO filing is packed with pointless life-affirming tropes. But it also details a host of conflicts of interest and other risks that should send investors running. Plus: India’s powerhouse Reliance is building a war chest for dominance.
Aramco’s valuation dreams become quasi-reality 12 Aug 2019 Put the Saudi oil giant’s latest dividend on Exxon’s forecast yield, and its equity nears Crown Prince Mohammed bin Salman’s desired $2 trillion valuation. Yet Aramco’s first-half payout was unusually fat. A more realistic approach would put a lower price tag on the delayed IPO.
Saudi and healthcare tech each get shot in the arm 5 Aug 2019 The kingdom's sovereign wealth fund is injecting $200 mln into healthcare app Babylon. After being passed over by SoftBank, the startup gets fresh impetus and a $2 bln valuation. Saudi gets welcome proof that its poor human rights record won’t stop companies taking its money.
SoftBank’s new $108 bln vision is broader, fuzzier 26 Jul 2019 Vision Fund 2 so far lacks endorsement from prior investors Saudi Arabia and Abu Dhabi. It has plenty of heft, though, and less Saudi money might relieve wary investees. Focus is an issue: targeting anything “tech-enabled” gives Masayoshi Son a very long spending leash.
Aramco gives bankers new scope for Saudo-masochism 19 Jul 2019 A second crack at the Saudi oil giant’s stalled $100 bln IPO could mean different bankers. Spurned advisers can comfort themselves that the listing won’t be lucrative and may never happen. The reputational and other issues that plagued the first attempt have only intensified.
Indian learning startup is envy of its class 11 Jul 2019 Byju’s fundraise values it at $5.7 bln, a 50% jump in seven months. A sturdy business model is why new backers include A-grade investors like Qatar. U.S. and British parents may spend proportionately less on education but that need not slow growth as the group expands overseas.
Branson’s space deal defies financial gravity 9 Jul 2019 The bearded billionaire is selling half his cosmic travel group to former Facebook executive Chamath Palihapitiya’s blank-check vehicle. A $1.5 bln valuation looks rich given Virgin Galactic’s record of two test flights. Still, it needs cash, and Palihapitiya has too much of it.
Gulf backers can recycle Vision Fund cash 8 Jul 2019 Saudi and Abu Dhabi investors are mulling whether to support SoftBank’s plans for a second $100 bln vehicle. Though cash is tight, they could pledge to reinvest returns from the first fund. The hitch is that CEO Masayoshi Son may not get the money as fast as he wants to spend it.
OPEC extends its awkward holding pattern 1 Jul 2019 The oil-producing group and allies like Russia can probably gee up prices a little by prolonging output cuts brought in last year. Gulf tensions should offset a demand-led hit to prices. But they will also make big contracts like Exxon’s $53 bln one in Iraq harder to close.
Qatar shows up late to wealth fund buyout party 18 Jun 2019 The gas-rich emirate’s wealth fund plans to choose its own investments in areas like tech and private equity, instead of using third-party managers. That chimes with what rivals are doing, and echoes its own racy history. Now is hardly the best time to revert to type, though.
Gulf oil risk response looks too sanguine 13 Jun 2019 The price of Brent crude jumped 2.5% after attacks on two tankers near the critical Strait of Hormuz. The U.S. secretary of state blames Iran. With oil still barely above $60 a barrel, the market reaction to this tense situation looks mild. That puts a lot of faith in cool heads.
Aramco sale would grease Mukesh Ambani’s tidy-up 18 Apr 2019 The Saudi oil giant is eyeing a stake in the energy assets of the tycoon’s $127 bln Reliance Industries. That would aid Aramco’s strategic ambitions. It would also mean India’s biggest listed group could keep expanding its consumer-to-oil businesses without adding too much debt.
Aramco frenzy is wrong measure of Saudi renewal 10 Apr 2019 Frantic demand for the oil giant’s $12 bln bond issue might be interpreted as a sign of support for the desert kingdom’s efforts to diversify its economy. Yet securing long-term investment is harder than selling securities. And only some of the buying reflects genuine enthusiasm.
Overpriced Aramco debt still has a Saudi discount 10 Apr 2019 Strong demand for the oil giant’s first bond allowed it to raise $12 billion at lower rates than expected. Borrowing costs are still higher than Western oil peers. But it makes little sense for investors to view the bonds as less risky than Saudi’s tarnished government.
Payments duo hush European IPO bankers’ lament 10 Apr 2019 Nexi and Network International are selling shares worth $4 bln amid a dearth of new issues in 2019. The Italian and Middle Eastern groups have reliable revenues and high margins, drawing interest even from edgy investors. Network’s superior growth rate merits a higher multiple.
Carlyle shows Mubadala benefits of procrastination 8 Apr 2019 The buyout group is acquiring 30-40 pct of Cepsa from the Abu Dhabi fund. The $12 billion enterprise value is in line with the Spanish energy group’s aborted IPO last October. The only downside is that a listing would have made it easier for Mubadala to sell more in future.
Aramco is just not big enough 2 Apr 2019 The Saudi oil producing giant is hyper-efficient, but it still doesn’t warrant the $2 trillion value envisaged by the kingdom’s crown prince.
Saudi Aramco is big, just not big enough 2 Apr 2019 The oil producer’s accounts show it is hyper-efficient. That helps its valuation, as does the rise in the price of crude since Aramco first flirted with an IPO. But while the company is a giant, it still doesn’t warrant the $2 trillion value envisaged by Saudi’s crown prince.