Aramco IPO beggars needn’t feel like losers 19 Jan 2018 BAML, UBS and Barclays have missed the cut to be global coordinators on the Saudi oil giant’s mega-listing, Reuters reports. Forgoing big fees from a $100 billion IPO will be cause for garment rending. Then again Saudi is a risky client and the process is replete with uncertainty.
Our 2018 predictions on Reuters TV 31 Dec 2017 From the CEOs who should run for U.S. president, to the banks that ought to be sizing up mergers, our writers give their take on the coming year in a series of Reuters video reports.
Apple and Saudi test out their comfort zones 28 Dec 2017 Saudi Arabia’s large population and income make it logical that the smartphone giant is in talks to open a shop. Enticing a cutting-edge global tech firm would also gloss the crown prince’s rule and modernizing campaign. There are risks for both; Saudi’s gamble may be bigger.
Viewsroom: Saudi Aramco’s path may lead to China 21 Dec 2017 That the Hong Kong Stock Exchange will join Riyadh in hosting the world’s largest IPO is one of Breakingviews’ 2018 predictions. We also explain the method to our fortune-telling and lay out why China will win the 5G standards race and why Wall Street will learn to love bitcoin.
Saudi Aramco’s backup IPO plan runs through China 19 Dec 2017 Venue shopping is proving difficult for Saudi's national oil giant. London's listing rules - and Qatar’s investment in the LSE - will be hard to overcome. Legal risks make New York iffy. A Hong Kong float, supported by a pipeline of cash from China, may be the least-bad option.
Leonardo is a masterpiece of Saudi contradictions 7 Dec 2017 Crown Prince Mohammed bought the $450 mln “Salvator Mundi,” a report says. The heir to an absolute monarchy professes to be a reformer and corruption fighter, yet is spending with unseen extravagance. That may not go down well at home, or with potential investors in Aramco.
Saudi needs OPEC cuts to work, but not too well 30 Nov 2017 The oil cartel agreed to extend cuts until the end of 2018. Its moderation has drained inventories and lifted prices. Further cuts won’t boost prices enough to balance Saudi’s budget. Then again, that gives the crown prince a reason to continue with his challenging reforms.
Hadas: Unintended consequences may be new normal 15 Nov 2017 From Brexit to Donald Trump to Saudi Arabia, the world is full of surprises. But those cheering wrenching change may face further upsets. The UK rejoins the EU, the U.S. president discredits small government, and Saudis become poorer. The next shock may be the rise of dullness.
McKinsey needs to run a matrix on itself 10 Nov 2017 The consulting firm has been facing tough questions over hiring in Saudi, and work in South Africa. Neither helps its image. But more worrying is how data is making consulting a commodity. Doling out advice looks less valuable when one’s own business is struggling.
Ritz roundup is dark side of grand Saudi ambition 5 Nov 2017 The detention of elites including Prince Alwaleed in an anti-corruption drive may head off opposition to the crown prince's reforms. It could clear the way for initiatives like his $500 bln desert city. But it also makes needed underpinnings, like the rule of law, less credible.
Viewsroom: Saudi Arabia’s city of the future 2 Nov 2017 Crown Prince Mohammed bin Salman has a $500 bln plan to attract new business to the oil-dependent kingdom: build a utopian society on the Red Sea free of many of Saudi’s legal and cultural constraints. Plus: why tech and finance execs won’t be joining President Trump in Asia.
Cox: Saudi crown prince revealed his magic number 2 Nov 2017 It's not a sum of money, but a year: 1979. Mohammed bin Salman's promise to return the kingdom to the more moderate society that prevailed before the siege of the Grand Mosque is a watershed moment. Global investors can play a role in helping the Saudis modernize.
Kool-Aid on tap in Saudi Arabian desert 26 Oct 2017 The crown prince’s vision for a $500 bln mega-city may have generated even more buzz than the mooted IPO of oil behemoth Aramco. But any kind of success depends on people wanting to do business and live there. The kingdom faces a tough uphill road on competitiveness and freedom.
Saudi utopia plan is so bonkers it just might work 26 Oct 2017 The nation’s crown prince plans to build NEOM, a shining $500 bln city on the Red Sea where entrepreneurs draft the rules and robots outnumber people – and which one day will be a publicly listed company. Dreamers are welcome, but he'll need capable doers above all else.
Cox: Aramco clouds Saudi’s coming-out party 24 Oct 2017 The kingdom’s crown prince is hosting a mini-Davos this week to showcase Riyadh's charms as a financial center. From Masayoshi Son to Steve Mnuchin, participants may mostly avoid questions about one of his key goals: the touted but uncertain market debut of oil giant Aramco.
China is third-best option for Saudi Aramco 16 Oct 2017 With its $2 trln public offering in the balance, the Saudi oil giant may bring in a Chinese investor. That would provide cash the state doesn’t urgently need. The other perks of an international IPO, like regional influence and financial discipline, aren’t to be found in Beijing.
Aramco IPO logic is going up in smoke 13 Oct 2017 With oil prices under pressure and OPEC potentially extending cuts, the Saudi oil company’s IPO always seemed a stretch. Aramco had yet to pick an exchange, and would have had to get its books into shape. With private capital abundant, there's little purpose to all the hand wringing.
Bond investors toss a coin on Saudi reforms 28 Sep 2017 The kingdom’s $12.5 bln bond was oversubscribed. Rising oil prices and low debt help explain the appeal. But the 30-year notes remain a bet that Crown Prince Mohammed bin Salman can wean Saudi Arabia off oil. Investors’ zeal is a benchmark of the demand for emerging market debt.
Qatar jet deal a win for BAE but a loss for London 18 Sep 2017 A deal to buy Typhoon fighter jets will secure thousands of UK manufacturing jobs. But building stronger defence ties with the sheikhdom is a risk when its squabble with Saudi Arabia is unresolved. That could backfire if the kingdom reacts by vetoing a London listing for Aramco.
Saudi can afford to scrap Aramco IPO plan 14 Sep 2017 Achieving the desired $2 trillion valuation for its crown jewel is going to be tricky. Instead of rushing the job, Riyadh may delay listing 5 percent beyond next year. Even then, political and pricing problems will remain. If it wants money, the kingdom has better alternatives.