[Cog]

A lot of money is going to be made by someone.

https://www.ft.com/content/27effca4-154 ... e067d5072c

Saudi Arabia has appointed banks to conduct preparatory work on the initial public offering of Saudi Aramco, the world’s largest oil producer, which is aiming to become the most valuable listed company. The state-controlled company has hired JPMorgan, Morgan Stanley and HSBC as financial advisers for the listing, said four people briefed on the matter.
Saudi Arabia is looking to sell as much as a 5 per cent stake in Saudi Aramco, in a listing that could value the company at $2tn, according to officials in the country.

Even if the company is worth just half of that amount it would still set a record for the amount raised in an IPO.

[onlooker]

$this->bbcode_second_pass_quote('Cog', 'A') lot of money is going to be made by someone.

https://www.ft.com/content/27effca4-154 ... e067d5072c

Saudi Arabia has appointed banks to conduct preparatory work on the initial public offering of Saudi Aramco, the world’s largest oil producer, which is aiming to become the most valuable listed company. The state-controlled company has hired JPMorgan, Morgan Stanley and HSBC as financial advisers for the listing, said four people briefed on the matter.
Saudi Arabia is looking to sell as much as a 5 per cent stake in Saudi Aramco, in a listing that could value the company at $2tn, according to officials in the country.

Even if the company is worth just half of that amount it would still set a record for the amount raised in an IPO.

[Cog]

This is about the only IPO I've considered getting in on.

[Outcast_Searcher]

$this->bbcode_second_pass_quote('Cog', 'T')his is about the only IPO I've considered getting in on.

[Cog]

Speculative no doubt. I'm already invested in oil stock through XOM and BP mostly for dividends.

I have passed on IPO's in the past because I didn't trust their business model. Snapchat was a recent example. They haven't turned a profit ever, even before they went public.

But there will be a lot of money around this particular IPO and the Saudi's have every reason to boost its price up. The Saudi's also have some friends with a lot of money. So a little speculative play might be warranted. Would I accuse the Saudi's of stock manipulation? Well I certainly would hope so.

[rockdoc123]

just guessing but I suspect a big part of the initial float on Aramco shares will be held by the large investment firms prior to opening on the market. If you have a relationship with those firms you might be able to get some amount of the IPO but I think this one is so popular it will likely only get distributed to their biggest clients. When the remaining float breaks on the market it will almost certainly be like Snapchat where the price is unreasonably high out of the gate and trades even higher throughout the day. After a very short while the arbs will jump in and drive the price back down to below what it came on the market for.
Of course this assumes the Saudis decide to puts lots and lots of shares on the market, if they decide instead to go with a more limited float and higher price/share then it could be pretty frantic for awhile. I tend never to invest in IPO's unless I have the inside track through an investment firm that has a piece of it before it starts trading. Trading once it is on the market is just too unpredictable and generally not driven by fundamentals.

[Cog]

Since Aramco is a state owned company, which essentially means its owned by the Saudi royal family, its in their interest that as many institutions and individuals own this stock as possible. Make it as ubiquitous as owning Ford or GE. This gives them some insulation from other governments taking actions which would hurt Aramco and thus the Saudi royals . Plus the Saudis get some capital infusion.

[rockdoc123]

Maybe so but the large investment houses will not take something on like this unless there is a lot in it for them. And that comes in the way of commissions as they spread the shares out amongst their preferred clients. So from the Saudi perspective the shares are not owned by the investment houses, they have preferential access to them prior to release on the market but all of the shares are held by individual shareholders that are the best customers of that financial institution.
My point is if you aren't one of those best customers your only hope is to try and buy shares as soon as the market opens but by then they will probably have increased in price considerably.

[Cog]

When SNAP went public and individuals investors could purchase it on the NYSE, the price rose about $2.50/share for a short time. A quick in and out and you have your profit. Course it could have gone down immediately after opening as well. Life is not without risk.

[Plantagenet]

$this->bbcode_second_pass_quote('Cog', 'S')ince Aramco is a state owned company, which essentially means its owned by the Saudi royal family, its in their interest that as many institutions and individuals own this stock as possible. Make it as ubiquitous as owning Ford or GE. This gives them some insulation from other governments taking actions which would hurt Aramco and thus the Saudi royals .

[Ibon]

$this->bbcode_second_pass_quote('Plantagenet', '')$this->bbcode_second_pass_quote('Cog', 'S')ince Aramco is a state owned company, which essentially means its owned by the Saudi royal family, its in their interest that as many institutions and individuals own this stock as possible. Make it as ubiquitous as owning Ford or GE. This gives them some insulation from other governments taking actions which would hurt Aramco and thus the Saudi royals .

[rockdoc123]

$this->bbcode_second_pass_quote('', 'B')ut whats to prevent them from expropriating the oil holdings again some interval of time after this new stock is issued, and taking back the oil into 100% royal hands for a second time.

[onlooker]

http://theeconomiccollapseblog.com/arch ... -absurdity
$this->bbcode_second_pass_quote('', 'A')nyone that cannot see that we are in the midst of an absolutely insane stock market bubble simply does not understand economics. Every valuation indicator that you can possibly point to says that we are in a bubble of epic proportions, and history teaches us that all bubbles inevitably come to an end at some point.

[onlooker]

One big Ponzi, P. Those in the know (insiders) will take their money out just in time, the rest will be left holding the bag. I personally think its "the artificial intelligence/robotic/tesla hype". Irrational hope has no limits. That is a big reason why at this late stage our species in mass as not woken up to our collective plight

[vtsnowedin]

It was noted today that the top five stocks in the DOW by capitalization have 24% of the value of the Dow fifty. The five are :Apple, Google, Microsoft, Amazon, & Facebook.
All of them computer and internet based and two of them primarily advertising platforms.
Imagine what would happen to the market if they all got hacked simultaneously?

[Newfie]

That's why I keep saying the percieved wealth of the 1% does not really exist.

[Hawkcreek]

$this->bbcode_second_pass_quote('pstarr', '
')onlooker, I see this either of two ways: the investor really believes the artificial intelligence/robotic/tesla hype and believes in the Singularity; or they are feeling particularly apocalyptic and are just cruising to their doom with a big old 'f#ck-all' attitude.

[Hawkcreek]

$this->bbcode_second_pass_quote('Newfie', 'T')hat's why I keep saying the percieved wealth of the 1% does not really exist.