Aramco IPO ... more delays NOW CANCELED

Aramco revenues built SABIC, provide discounted feedstock, and now they formally buy it. This is just shuffling money around internally to siphon some off. Aramco’s best market value would be shedding it on the cash hemorrhaging deals. Now if they’d just build more Universities, sport stadiums, and why not fish hatcheries while we are at it. 

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On 7/21/2018 at 2:07 AM, John Foote said:

Aramco revenues built SABIC, provide discounted feedstock, and now they formally buy it. This is just shuffling money around internally to siphon some off. Aramco’s best market value would be shedding it on the cash hemorrhaging deals. Now if they’d just build more Universities, sport stadiums, and why not fish hatcheries while we are at it. 

And cinemas, don't forget cinemas. They just removed a ban on cinemas.

It's fascinating to see this tactic of moving money from one pocket to the other while the movers try to keep a straight face and believe everyone's amazed at their, erm, investment talent and financial prowess. Endearing, really.

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7 hours ago, Marina Schwarz said:

And cinemas, don't forget cinemas. They just removed a ban on cinemas.

Cinemas are an exception, they don't need public patronage monies to build movie theaters. There is a large pent up demand for family activities and Saudis are very genuinely family oriented. 

The amount of money that leaves the Kingdom on weekends, especially three day weekends, just so a family can see a movie together, is amazing. 

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Appears to have been nixed

 

https://www.reuters.com/article/us-saudi-aramco-ipo-exclusive/exclusive-aramco-listing-plan-halted-oil-giant-disbands-advisors-sources-idUSKCN1L71TZ

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15 minutes ago, HermitMunster said:

YES. Aramco IPO a no-go. Saudi Arabia/Aramco properly managed market expectations here, first hinting there were many hoops to jump through, then hinting at a delay, then insisting there was no delay, then hinting it would only be private, then denying that, then suggesting more delays, and so on. Now everyone reads this news and says to themselves, "SEE, I KNEW IT!" People feel vindicated, and not disappointed, because everyone would like to believe that they knew all along these plans were dead in the water.

Way to go KSA!

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This was inevitable, but I do believe the country would be better off is Aramco operated with the transparency and decision making being publically listed requires.

MBS’s initiatives are struggling, Yemen, Syria, 2030, etc. He is a master of power intrigue and power consolidation in the Kingdom, but he’s been taken to the cleaners with his councilors advice.

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On 7/26/2018 at 3:55 PM, John Foote said:

Cinemas are an exception, they don't need public patronage monies to build movie theaters. There is a large pent up demand for family activities and Saudis are very genuinely family oriented. 

The amount of money that leaves the Kingdom on weekends, especially three day weekends, just so a family can see a movie together, is amazing. 

Thats why Abdullah sent the Army into Bahrain in 2011 - keep the bars and brothels open. Better there than inside KSA. 

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21 minutes ago, Rodent said:

YES. Aramco IPO a no-go. Saudi Arabia/Aramco properly managed market expectations here, first hinting there were many hoops to jump through, then hinting at a delay, then insisting there was no delay, then hinting it would only be private, then denying that, then suggesting more delays, and so on. Now everyone reads this news and says to themselves, "SEE, I KNEW IT!" People feel vindicated, and not disappointed, because everyone would like to believe that they knew all along these plans were dead in the water.

Way to go KSA!

I have several friends who still work for Aramco and they have all said the empire building and creation of petty fiefdoms within the company is worse than ever. Furthermore expat recruitment is more and more orientated towards people of the correct religion, certain nationalities irrespective of whether they can actual do / or are willing to do any work. 

For example a guy who was employed to do food supplier safety assurance from contractors (and well qualified and experienced to do so) was replaced by a Doctor who hasn't got a clue but helps the Divisional bod build a fiefdom when said underlings are Physicians!

Thats what potential investors are buying into. 

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1 hour ago, NickW said:

Thats why Abdullah sent the Army into Bahrain in 2011 - keep the bars and brothels open. Better there than inside KSA. 

No, that was a brutal crushing of the Arab Spring in Bahrain. Bahrain is a vassal state of Saudi Arabia. The bars were just a bonus, but there is also Egypt, Turkey, and Dubai for that. 

And yes, parts of Bahrain are a sin bin. But many families just go to be together in public in ways that aren’t Allowed in Saudi. 

The Dilmun culture is amazing, predates most of Saudi. You can see a mosque, a church, a temple, and a bar, all in walking distance to each other. Their ambassador to the UN was once a Jewish woman. A very accepting culture. 

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1 hour ago, John Foote said:

No, that was a brutal crushing of the Arab Spring in Bahrain. Bahrain is a vassal state of Saudi Arabia. The bars were just a bonus, but there is also Egypt, Turkey, and Dubai for that. 

And yes, parts of Bahrain are a sin bin. But many families just go to be together in public in ways that aren’t Allowed in Saudi. 

The Dilmun culture is amazing, predates most of Saudi. You can see a mosque, a church, a temple, and a bar, all in walking distance to each other. Their ambassador to the UN was once a Jewish woman. A very accepting culture. 

I know - I was there from 2010-12. I was driving back from Bahrain and saw the Army coming the other way on the Causeway. 

 

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The round-a-bout by the giant mall is still closed.

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4 hours ago, Rodent said:

YES. Aramco IPO a no-go. Saudi Arabia/Aramco properly managed market expectations here, first hinting there were many hoops to jump through, then hinting at a delay, then insisting there was no delay, then hinting it would only be private, then denying that, then suggesting more delays, and so on. Now everyone reads this news and says to themselves, "SEE, I KNEW IT!" People feel vindicated, and not disappointed, because everyone would like to believe that they knew all along these plans were dead in the water.

Way to go KSA!

I'm shocked.  Shocked, I tell you ...

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On 7/21/2018 at 4:59 AM, Rodent said:

If you are one of the three people in the world holding out that Aramco will complete its IPO this year or next, you are in for some disappointment. Otherwise, carry on.

Aaaaaand in totally, completely, absolutely unrelated news, that is no way at all in the least bit similar to the Saudi Aramco IPO saga...

Elon Musk: Tesla Is ‘Definitely Not Going Bankrupt’

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2 hours ago, Tom Kirkman said:

Aaaaaand in totally, completely, absolutely unrelated news, that is no way at all in the least bit similar to the Saudi Aramco IPO saga...

Elon Musk: Tesla Is ‘Definitely Not Going Bankrupt’

Heh heh   ...  update:

 

Saudi energy minister says Aramco IPO still on, refutes media reports indicating otherwise

In response to recent media reports about the IPO of Saudi Aramco, H.E. Khalid Al Falih, Minister of Energy, Industry and Mineral Resources and Chairman of Saudi Aramco issued the following statement dismissing speculation surrounding the cancellation of the IPO as not true.

“The Government remains committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum. This timing will depend on multiple factors, including favorable market conditions, and a downstream acquisition which the Company will pursue in the next few months, as directed by its Board of Directors.

To prepare for the listing of Saudi Aramco, the Government has undertaken a number of major preparatory measures including issuing a new income tax law as it relates to hydrocarbons activities; reissuing a long-term exclusive concession; and appointing a new Board of Directors, amongst other measures to safeguard its interests and those of the company’s future private shareholders.

The company, for its part, has completed its internal program for IPO preparedness. Specifically, it has amended its bylaws; converted to a joint stock company; ensured that its internal segmental financial reporting aligns with potential listing venue requirements; established an investor relations function; and undertaken the first independent certification of its hydrocarbon reserves, all confirming the company’s peerless status in the industry. This is all positive progress on what is a complex process, preparing the company and the Kingdom for what will ultimately be a global landmark market offering of unprecedented quality and scale.”

 

So.......  to reiterate totally, completely, unrelated news of protestations ... Tesla is 'Definitely Not Going Bankrupt'

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31 minutes ago, Tom Kirkman said:

Heh heh   ...  update:

 

Saudi energy minister says Aramco IPO still on, refutes media reports indicating otherwise

In response to recent media reports about the IPO of Saudi Aramco, H.E. Khalid Al Falih, Minister of Energy, Industry and Mineral Resources and Chairman of Saudi Aramco issued the following statement dismissing speculation surrounding the cancellation of the IPO as not true.

“The Government remains committed to the IPO of Saudi Aramco at a time of its own choosing when conditions are optimum. This timing will depend on multiple factors, including favorable market conditions, and a downstream acquisition which the Company will pursue in the next few months, as directed by its Board of Directors.

To prepare for the listing of Saudi Aramco, the Government has undertaken a number of major preparatory measures including issuing a new income tax law as it relates to hydrocarbons activities; reissuing a long-term exclusive concession; and appointing a new Board of Directors, amongst other measures to safeguard its interests and those of the company’s future private shareholders.

The company, for its part, has completed its internal program for IPO preparedness. Specifically, it has amended its bylaws; converted to a joint stock company; ensured that its internal segmental financial reporting aligns with potential listing venue requirements; established an investor relations function; and undertaken the first independent certification of its hydrocarbon reserves, all confirming the company’s peerless status in the industry. This is all positive progress on what is a complex process, preparing the company and the Kingdom for what will ultimately be a global landmark market offering of unprecedented quality and scale.”

 

So.......  to reiterate totally, completely, unrelated news of protestations ... Tesla is 'Definitely Not Going Bankrupt'

oh. my. gosh!!!

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1 hour ago, Rodent said:

oh. my. gosh!!!

I'm preparing an IPO for a world class Bridge that connects Brooklyn to Manhattan.  Hurry, limited time offer.  Cash only.

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5 hours ago, Tom Kirkman said:

I'm shocked.  Shocked, I tell you ...

Well, did you just steal my shock or did you just get here first. It is the most shocking news of the year.

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1 minute ago, Marina Schwarz said:

Well, did you just steal my shock or did you just get here first. It is the most shocking news of the year.

Keep scrolling down through the comments.  I'll wait here ...

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9 hours ago, John Foote said:

No, that was a brutal crushing of the Arab Spring in Bahrain. Bahrain is a vassal state of Saudi Arabia. The bars were just a bonus, but there is also Egypt, Turkey, and Dubai for that. 

And yes, parts of Bahrain are a sin bin. But many families just go to be together in public in ways that aren’t Allowed in Saudi. 

The Dilmun culture is amazing, predates most of Saudi. You can see a mosque, a church, a temple, and a bar, all in walking distance to each other. Their ambassador to the UN was once a Jewish woman. A very accepting culture. 

instability in Bahrain would also have upset oil markets. And don't forget that Bahrain has oil too. Saudis eager to quash any unrest. 

 

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2 hours ago, Tom Kirkman said:

Keep scrolling down through the comments.  I'll wait here ...

Done! By the way, Musk's quoting the notes on "The Waste Land" on Twitter. I'm sure it will make breaking news in the next few hours, eclipsing the not-going-bankrupt story. I mean, it's a statement of hope, not news. Now, the notes on T.s. Elliott's finest works, on the other hand might have a hidden meaning... Please excuse my digression.

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1 hour ago, Marina Schwarz said:

Please excuse my digression

No apologies needed for your indigressions  : )

Heck, Elon's digressing is amusing (and probably ambien-induced prattlings as well).

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It certainly is. So was Al-Falih's statement following the Big Bad and Surprising IPO News. Has Aramco released even one financial report, by the way? I remember they promised they wills tart reporting but I can't recall seeing or hearing about an actual report.

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1 hour ago, Marina Schwarz said:

It certainly is. So was Al-Falih's statement following the Big Bad and Surprising IPO News. Has Aramco released even one financial report, by the way? I remember they promised they will start reporting but I can't recall seeing or hearing about an actual report.

Perhaps actual reports are beyond the scope of this IPO.

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One report was released to the investment community that was formatted in an appropriate way. The report would have been fabricated because internal processes can’t produce the appropriate raw data. Doesn’t mean fraud, but rather a good faith estimate. 

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