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Saudi Arabia considering buying back the Aramco IPO stock and reverting to previous ownership structure.

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(edited)

Newly appoint Investment Minister Al-Falih is rumored to be discussing a plan with the royal family.

MBS's IPO of ARAMCO was an unmitigated diaster .  The problem it was 10 years too late.  There was no international participation.  Why would they. The buyers were either friends of KSA, as in UAE or Saudis citizens themselves.

The Saudis have been supporting the price whenever it came down close to the offering price by having the Wealth Fund buy shares.   That program went out the window Monday with the oil price crash.

A very large portion of the IPO offering was bought by Saudis citizens with money lent to them by the government.  Real smart ?  Incentives were given to buyers to sign off on selling until the lockup ended this coming June.

Now authorities realize there could be massive selling and resultant discontent when the lockup ends.  This would be a major embarrassment to MBS and challenge his authority and position as Crown Prince.

Naturally MBS won't take responsibility.  He will blame it on international investors or other outside entities.

It would cost about $30 Billion. Most of the Saudi elite were always against the IPO in the first place. 

This is a nightmare for the ruling party and a black mark (another one)  against MBS. 

Just one option they are considering.  Looking at other options like partial forgiveness of loan , etc.

Edited by BLA
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On 3/10/2020 at 3:06 PM, BLA said:

Newly appoint Investment Minister Al-Falih is rumored to be discussing a plan with the royal family.

MBS's IPO of ARAMCO was an unmitigated diaster .  The problem it was 10 years too late.  There was no international participation.  Why would they. The buyers were either friends of KSA, as in UAE or Saudis citizens themselves.

The Saudis have been supporting the price whenever it came down close to the offering price by having the Wealth Fund buy shares.   That program went out the window Monday with the oil price crash.

A very large portion of the IPO offering was bought by Saudis citizens with money lent to them by the government.  Real smart ?  Incentives were given to buyers to sign off on selling until the lockup ended this coming June.

Now authorities realize there could be massive selling and resultant discontent when the lockup ends.  This would be a major embarrassment to MBS and challenge his authority and position as Crown Prince.

Naturally MBS won't take responsibility.  He will blame it on international investors or other outside entities.

It would cost about $30 Billion. Most of the Saudi elite were always against the IPO in the first place. 

This is a nightmare for the ruling party and a black mark (another one)  against MBS. 

Just one option they are considering.  Looking at other options like partial forgiveness of loan , etc.

Too bad we can't short the stock.  

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On 3/10/2020 at 8:06 PM, BLA said:

Newly appoint Investment Minister Al-Falih is rumored to be discussing a plan with the royal family.

MBS's IPO of ARAMCO was an unmitigated diaster .  The problem it was 10 years too late.  There was no international participation.  Why would they. The buyers were either friends of KSA, as in UAE or Saudis citizens themselves.

The Saudis have been supporting the price whenever it came down close to the offering price by having the Wealth Fund buy shares.   That program went out the window Monday with the oil price crash.

A very large portion of the IPO offering was bought by Saudis citizens with money lent to them by the government.  Real smart ?  Incentives were given to buyers to sign off on selling until the lockup ended this coming June.

Now authorities realize there could be massive selling and resultant discontent when the lockup ends.  This would be a major embarrassment to MBS and challenge his authority and position as Crown Prince.

Naturally MBS won't take responsibility.  He will blame it on international investors or other outside entities.

It would cost about $30 Billion. Most of the Saudi elite were always against the IPO in the first place. 

This is a nightmare for the ruling party and a black mark (another one)  against MBS. 

Just one option they are considering.  Looking at other options like partial forgiveness of loan , etc.

Whush!!! 

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