Editorial | Aramco to strike it rich with investors
- Share sale by Saudi oil giant expected to raise up to US$40 billion despite global reaction to killing of journalist, drone attacks and climate worries
An old economy company with a huge carbon footprint is about to knock new economy firms off their perch at the peak of market valuations.
At the bankers’ estimated valuation of US$1.5 trillion, Aramco would be worth at least 50 per cent more than the world’s most valuable companies, Microsoft and Apple.
What really sets the listing apart is that as the world moves away from fossil fuels, Saudi Aramco is unlocking value in its oil reserves to invest in diversification of its economy and reduce dependence on oil. Scientists warn that the world must slash carbon emissions by half over the next decade to head off dangerous global warming.
Regulatory approval of the share sale comes about two months after crippling drone and missile attacks on Saudi oil facilities and amid concerns over human rights violations.
