Aramco update - 1 step closer to IPO
https://www.worldenergynews .com/news/aramco-converted-joint-stock-firm-ahead-ipo-668119
How big is Aramco deal? http://graphics.wsj .com/what-is-aramco/
https://www.thestreet .com/story/13542617/1/everything-you-need-to-know-about-the-saudi-aramco-ipo.html
MbS wants $500 billion to move SA away from oil revenue. He wants a robust, diversified economy. AlWaleed’s ransom plays into this plan. Part purging corruption without seeming “brutal” to the world. A typical SA response would be public hanging. MbS plays a delicate hand here because he will need US favor to fulfill his vision. China, India and others are investing money in SA infrastructure projects, banks, and housing. The civil war with Yemen is draining coffers. Regime change is not solidified. King could change mind. MbS plays hardball with bad behaving princes, but appeals to masses by granting liberties and freedoms.
2 things to watch: AlWaleed. We don’t have proof of life. If he’s alive and telling truths, Trump has smoking gun against HRC, Obama, and the rest. If he’s alive and not talking, he’s afraid of someone bigger than MbS. (Or, he’s just that arrogant). If he’s dead, it could set off a massive global market meltdown. AlWaleed has investments everywhere.
2nd thing is Aramco. IPO is estimated $100 billion cash inflow to SA. Trump seems confident IPO will be on NYSE. Hong Kong, UK, and others are vying for honor. This is huge to company offering IPO as well as country’s stock exchange. China has offered billions to simply buy Aramco stock to gain preferential pricing. SA doesn’t care who buys 5% of Aramco, only that it brings a minimum of $100 billion. If Aramco opens on another exchange, it is very possible the currency used to purchase all ME oil will change from USD. This could cause wild fluctuations in US crude prices, could devalue dollar, but would be positive for US exports (if US mfg anything anymore). Just imagine US buying crude with propped up yuan?
Look at news on US oil discovery and refinery. His mission is to lessen dependency on ME oil for a number of reasons. One is fate of Aramco. This is one story MSM is totally ignoring.