Undoubtedly, the IPO of the world's most profitable company has large investors who want to own shares. While Saudi Arabia has a number of local investors, bankers are looking for international investors. The current debate concerns only the stock price, as the announced forecasts have a wide range – in many cases up to $ 1 trillion.
Nevertheless, the IPO of Aramco attracts investors, especially from China, as the country wants to strengthen cooperation and participate in profits from the oil price. Bloomberg has reported According to unnamed sources, China's state-owned enterprises are considering cumulatively investing between $ 5 billion and $ 10 billion. One of them is the Beijing-based Silk Road Fund.
Sinopec Group, China's state-owned oil producer, and China Investment Corp., its sovereign wealth fund, are also considering buying shares, according to Bloomberg report,
Of course, the final amount would depend on government approval, and nothing has yet been decided.
The investment would play an important role in deepening the relationship between KSA and China and making the IPO of Amarco a greater success, after Western investors had previously been reluctant to insist on the oil giant's $ 2 trillion mark. The reaction of the US government is yet to be seen.
Russia's head of the Russian direct investment fund (RDIF), Kirill Dmitriev, told Reuters "Russia will definitely not make a big investment in Aramco as it is already exposed to high levels of oil."
However, as per new reports Reuters RDIF wants to win Chinese investors for the IPO of Aramco. Kirill Dmitriev told Reuters today: "… we do not expect massive investments from Russia as Russia already has a pretty strong oil and gas presence in its economy and we need to diversify the economy."
However, he added, "However, we confirm that the Russia-China fund is working in this direction to attract a number of Chinese investors for the IPO of Aramco."
In October, Saudi Aramco signed a Share Purchase Agreement (SPA) and 9 Memorandums of Understanding (MoU) with Russian companies as part of Saudi Aramco's upstream strategy. The companies include Gazprom Neft, Angara Service, Chelpipe, Galen, Integra, NKT, Technovek, PAO TMK and Intratool. Each of them signed a letter of intent with Saudi Aramco
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