HIGHER INCOME GROUPS SPENT LESS AFTER NOTE BAN
IPO share price out, valuing the company at up to $1.7 trillion
Top income earners cut down sharply on their expenditure, dragging consumer spending down for the first time in India in over four decades, leading to a decrease in income inequality.a classwise analysis of the National Statistical Office’s consumer expenditure survey showed the gap between the rich and the poor coming down in the six-year period till 2017-18.
writes
Saudi Aramco is worth up to $1.7 trillion at the price range set by the oil giant on Sunday, below the $2 trillion sought by Saudi's crown prince but putting it in the running to become the world's biggest IPO.
Aramco cannot sell its shares directly to investors in the United States and other markets, as the initial public offering (IPO) will be restricted to Saudis and those foreign institutions permitted to invest in the kingdom's stock market.
The oil giant said it plans to sell 1.5 per cent of the company, or about 3 billion shares, at an indicative price range of 30 riyals to 32 riyals, valuing the IPO at as much as 96 billion riyals ($25.6 billion) and giving the company a potential market value of between $1.6 trillion and $1.7 trillion.
This could just beat Alibaba's record $25 billion New York stock market debut in 2014. Aramco's IPO size could be bigger if there is enough demand for it to use a 15 per cent "greenshoe" overallotment option. "We are planning to subscribe to the IPO in two funds that we manage," said Zachary Cefaratti, chief executive officer of
Dubai-based Dalma Capital Management Ltd, adding that the preliminary valuation was "in line with our expectations".
Aramco kicked off its IPO on November 3 after a series of false starts. Crown Prince Mohammed bin Salman, who floated the idea nearly four years ago, is seeking to raise billions of dollars to invest in non-oil industries, create employment and diversify the world's top crude exporter away from oil.
In its original prospectus, published on November 9, Aramco said the domestic IPO would be made to institutional investors outside the United States according to Regulation S of the United States Securities Act of 1933, and inside the United States under the Rule 144A of the US Securities Act.
But on Sunday in an addendum to the IPO prospectus Aramco said that it had removed any reference to such regulations, which three people familiar with the matter said suggested there would not be any international roadshows to market the shares.
"I expect this is a reflection of poor international demand," said Rory Fyfe, managing director at MENA Advisors.
"It was not worth it from their view. If there's no substantial value or demand why do it and take additional legal risk?," a banker familiar with the matter told Reuters.