Aramco IPO is expected to be priced at 1.5 to 2 trillion dollars which will be around 15 to 20x PE. Likely dividend yield would range from 3.75 to 5 percent.

It will be listed in their domestic market for a start and they will be offloading a 2% stake. This IPO could signify the gradual downtrend of fossil fuels with the Saudi Kingdom diversifying and cashing in on their cash cow. Looking forward to much greener energy in the future.

Some interesting charts to have a feel if Aramco’s valuation is justifiable. I would feel a valuation of around 1.5 trillion would be reasonable and a deal could be push through.

For those who would like to set up a trading account, kindly drop me an email at kelvinlee@phillip.com.sg

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