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A company that will be at least 50% more expensive than Microsoft and Apple

A company that will be at least 50% more expensive than Microsoft and Apple

A company that will be at least 50% more expensive than Microsoft and Apple
A company that will be at least 50% more expensive than Microsoft and Apple 

Saudi Arabia's Crown Prince Mohammed receptacle Salman has called for Aramco to be esteemed at $ 2 trillion, in spite of the fact that market investigators and investors state it is reasonable that the market anticipates that the organization should cost around $ 1.5 trillion, as indicated by Reuters reports. . 

These figures went to the fore again after recharged discusses the time and spot of the IPO. 

Aramco's top managerial staff will meet in the not so distant future to talk about the issue. 

Sovereign Mohammed set a $ 2 trillion gauge in mid-2016 when the possibility of ​​selling a little stake in Aramco was conceived, and financial specialist cash must be put resources into decreasing the economy's reliance on oil from Saudi Arabia. 

A source acquainted with the organization's arrangements, who asked not to be recognized, stated: "If the market doesn't welcome the organization appropriately, Aramco's administration may choose to defer the posting." They are in no rush and have the correct devices to arrive at the imprint they have focused on.

But even in the lower valuation range, Aramco will become one of the most expensive companies in the world.

In recent months, it bought Saudi Basic Industries Corp. (SABIC) for $ 69 billion. In addition to raising Aramco's value, the deal revealed the company's financial results.

The state-owned company sold a $ 12 billion bond issue and had a $ 100 billion bond request.

Aramco's financial statements showed that the company's profits amounted to $ 111 billion last year, more than five of the largest oil companies in the world, namely Exxon Mobil, Royan Dutch Shell, BP, Chevron and Total.

This profit will cost the company from $ 1.4 to $ 1.5 trillion, along with SABIC, calculated by the banking sector. A source close to Aramco says this is a more realistic assessment of the company.

Oil and gas companies have not attracted strong investor interest in recent months, mainly due to lower expected consumption of their products in the coming years and worsening climate problems.

S&P Energy added just 2% in 2019 compared to 15% for S & P500.

Even with an estimated $ 1.5 trillion, Aramco will be about 50% more expensive than Microsoft, and today it is the only company worth more than $ 1 trillion. Apple and Amazon are estimated at $ 946 billion and $ 921 billion respectively.

There is no doubt that the price of oil is the main factor in the valuation of the company. Today, Brent oil is trading at around $ 59, well below the $ 70- $ 80 level that OPEC members want.

Equally important for Aramco's assessment will be the integration of business with SABIC. Because before the IPO was delayed, many banks put Aramco at $ 1.3 to $ 1.7 trillion.

But will SABIC alone help Aramco get a required $ 2 trillion valuation? Let us not forget that the company produces 1 in 10 barrels of oil produced worldwide.

The acquisition of SABIC will allow Aramco not only to increase its revenues but also to become a global leader in the chemical industry.