Saudi Aramco unveils next stage of blockbuster flotation - BBC News

The world's most profitable company has published more details about its planned stock market flotation.

Oil giant Saudi Aramco's long-awaited prospectus said individual retail investors will have a chance to buy shares as well as big institutions.

But the 600-page prospectus did not say how much of the Saudi firm would be sold, nor the date of the listing.

It did, though, mention possible risks, including the government's control over oil output and terrorist attack.

Crown Prince Mohammed bin Salman is seeking to sell the shares to raise billions of dollars to diversify the Saudi economy away from oil by investing in non-energy industries.

Bankers think the long-awaited flotation will value Aramco at $1.5-2 trillion, making the stock market listing the biggest ever.

The prospectus said up to 0.5% of the company would be set aside for retail savers, but Aramco had not yet decided on the percentage for larger institutional buyers.

After the flotation, Aramco will not list any more shares for six months, the prospectus says. Although one of the attractions for investors is the potential of high dividends, the document said Aramco has the right to change dividend policy without prior notice.

Aramco has hired a host of international banking giants including Citibank, Credit Suisse and HSBC as financial advisers to assess interest in the share sale and set a price. Based on the level of interest - a final value will be put on the shares on 5 December.

The sale of the company, first mooted four years ago, has been overshadowed by delays and criticism of corporate transparency at Saudi Arabia's crown jewel.

It was initially thought about 5% of Aramco would be sold, but the final figure is now expected to be half that.

Amid speculation that some foreign institutional investors are cool on the flotation, the government has reportedly pressed wealthy Saudi business families and institutions to invest, and many nationalists have labelled it a patriotic duty.

Aramco last year posted $111bn in net profit. In the first nine months of this year, its net profit dropped 18% to $68bn.

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https://www.bbc.com/news/business-50365604

2019-11-10 11:25:01Z
CBMiKmh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy9idXNpbmVzcy01MDM2NTYwNNIBLmh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy9hbXAvYnVzaW5lc3MtNTAzNjU2MDQ

Saudi Aramco unveils next stage of blockbuster flotation - BBC News

The world's most profitable company has published more details about its planned stock market flotation.

Oil giant Saudi Aramco's long-awaited prospectus said individual retail investors will have a chance to buy shares as well as big institutions.

But the 600-page prospectus did not say how much of the Saudi firm would be sold, nor the date of the listing.

It did, though, mention possible risks, including the government's control over oil output and terrorist attack.

Crown Prince Mohammed bin Salman is seeking to sell the shares to raise billions of dollars to diversify the Saudi economy away from oil by investing in non-energy industries.

Bankers think the long-awaited flotation will value Aramco at $1.5-2 trillion, making the stock market listing the biggest ever.

The prospectus said up to 0.5% of the company would be set aside for retail savers, but Aramco had not yet decided on the percentage for larger institutional buyers.

After the flotation, Aramco will not list any more shares for six months, the prospectus says. Although one of the attractions for investors is the potential of high dividends, the document said Aramco has the right to change dividend policy without prior notice.

Aramco has hired a host of international banking giants including Citibank, Credit Suisse and HSBC as financial advisers to assess interest in the share sale and set a price. Based on the level of interest - a final value will be put on the shares on 5 December.

The sale of the company, first mooted four years ago, has been overshadowed by delays and criticism of corporate transparency at Saudi Arabia's crown jewel.

It was initially thought about 5% of Aramco would be sold, but the final figure is now expected to be half that.

Amid speculation that some foreign institutional investors are cool on the flotation, the government has reportedly pressed wealthy Saudi business families and institutions to invest, and many nationalists have labelled it a patriotic duty.

Aramco last year posted $111bn in net profit. In the first nine months of this year, its net profit dropped 18% to $68bn.

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https://www.bbc.com/news/business-50365604

2019-11-10 10:40:04Z
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Saudi Aramco will offer less than 1% of its shares to individual investors. It still might be the biggest IPO ever - CNN

Saudi Arabia's state oil company said the offering period will begin on November 17 and close on December 4. It will price its shares on December 5, with trading on the Saudi stock exchange, the Tadawul, expected to start in mid-December, according to its prospectus.

The public offering could be largest in history. Aramco has vast oil reserves and massive daily output. It holds a monopoly in Saudi Arabia, the world's largest exporter of crude. The company posted a $68 billion profit for the first nine months of this year, down 18% on the same period in 2018. Profit for the whole of 2018 was $111 billion.

The prospectus did not say how much of the company will be floated, but it did specify that up to 0.5% of shares will be sold to individual investors. There is one class of ordinary shares and a share entitles its holder to one vote. Each shareholder has the right to attend and vote at the general assemblies.

The company will not be able to list additional shares for six months after trading begins. All necessary regulatory and corporate approvals required for the offering have been secured for the IPO, it said.

Details of the long-awaited IPO come as low oil prices, the climate crisis and geopolitical risk have raised skepticism among international investors.

Crown Prince Mohammad bin Salman has reportedly sought a valuation for Aramco near $2 trillion. But a model run by Palissy Advisors, an investment advisory firm based in London, puts Aramco's value at just $1 trillion.

Aramco may need to heavily rely on rich local families, sympathetic sovereign wealth funds or major customers such as China signing up for shares.

There's also growing expectation that Aramco will need to sweeten its dividend in order to get more global investors in the door. The company has committed to a $75 billion annual dividend through 2024. What investors earn from these payouts could compete with ExxonMobil (XOM) and Royal Dutch Shell (RDSA), depending on Aramco's valuation. But Saudi Arabia may need to put up more to boost interest in its partial privatization.

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https://www.cnn.com/2019/11/09/investing/saudi-aramco-ipo-prospectus/index.html

2019-11-10 07:31:00Z
CAIiEF8tR9rtD06glhnQe2405lkqGQgEKhAIACoHCAowocv1CjCSptoCMPrTpgU

Garbage, fake, ‘degenerate’: How Donald Trump describes this venture owned by the world's richest man - Times of India

US President Donald Trump and Amazon CEO Jeff Bezos don’t really see eye to eye on many things. Bezos, who is the richest man in the world, is the owner of many businesses and companies. One ‘high-profile’ venture that Bezos has is The Washington Post and Donald Trump has been extremely vocal in his criticism of the newspaper. In less than 24 hours, Trump unleashed a barrage of tweets where he called The Washington Post — or rather as he likes to call it The “Amazon” Washington Post — fake, garbage and degenerate.
In his first tweet, while criticising the newspaper and its reporters, Trump called it “a garbage newspaper.” In his second tweet, Trump accused Washington Post of doing a “made up” story and called it “degenerate”. In another tweet he called the newspaper “Fake Washington Post.”

The Amazon Washington Post and three lowlife reporters, Matt Zapotosky, Josh Dawsey, and Carol Leonnig, wrote anoth… https://t.co/hNMz3auIeb

— Donald J. Trump (@realDonaldTrump) 1573140477000

The degenerate Washington Post MADE UP the story about me asking Bill Barr to hold a news conference. Never happene… https://t.co/ruycbGh1rJ

— Donald J. Trump (@realDonaldTrump) 1573134390000

As we mentioned, all these tweets happened in the space of less than 24 hours.
In fact, earlier this year, he actually called Jeff Bezos as “Jeff Bozo” in a tweet. In the same tweet, he also said that it would be better if “Amazon Washington Post” was owned by someone else. “So sorry to hear the news about Jeff Bozo being taken down by a competitor whose reporting, I understand, is far more accurate than the reporting in his lobbyist newspaper, the Amazon Washington Post. Hopefully the paper will soon be placed in better & more responsible hands!”
Bezos on his part has always maintained a certain restraint about commenting on Trump, at least in public. Except one time and that too was when Trump wasn’t the US president. Back in December 2015, Trump had criticised Bezos and Washington Post in a tweet. Bezos then – and perhaps one of the very few times – directly responded Trump. “Finally trashed by @realDonaldTrump. Will still reserve him a seat on the Blue Origin rocket. #sendDonaldtospace” In the tweet, Bezos actually said that Trump should be sent to space and that he will save him a seat on one of his rockets.

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https://timesofindia.indiatimes.com/gadgets-news/garbage-fake-degenerate-how-donald-trump-describes-this-venture-owned-by-the-worlds-richest-man/articleshow/71990366.cms

2019-11-10 04:03:46Z
CAIiENIFVl0PQSus4fjz3twpyJ4qGQgEKhAIACoHCAowzrL9CjDC7vQCMNG6owY

Saudi Aramco prospectus flags risks, gives few details on IPO size - Reuters

DUBAI (Reuters) - Saudi state oil giant Aramco will sell 0.5% of its shares to individual retail investors and the government will have a lockup period of a year on further share sales after the initial public offering, its prospectus said on Saturday.

FILE PHOTO: The Saudi Aramco logo is pictured at the company's oil facility in Abqaiq, Saudi Arabia, October 12, 2019. REUTERS/Maxim Shemetov/File Photo

The more than 600-page prospectus did not include details of how much of the company would be floated in total or of any commitments from anchor investors.

Sources have said the company could sell 1%-2% on the Saudi stock market in what could be the world’s largest listing.

Offering for the shares will begin on Nov. 17, the prospectus said.

Aramco fired the starting gun on the initial public offering (IPO) on Nov. 3 after a series of false starts. Crown Prince Mohammed bin Salman is seeking to raise billions of dollars to diversify the Saudi economy away from oil by investing in non-energy industries.

Among the risks highlighted in the prospectus were the potential for terrorist attacks and the potential for encountering antitrust legislation, as well as the right of the Saudi government to decide maximum crude output and direct Aramco to undertake projects outside its core business.

Aramco may also change its dividend policy without prior notice to its minority shareholders, it said. For a factbox on risk factors, click

Aramco’s oil facilities were targeted on Sept. 14 in unprecedented attacks that temporarily shut 5.7 million barrels per day (bpd) of output - more than 5% of global oil supply.

LOCKUP PERIOD

The prospectus said the government will have a “statutory lockup period” for disposing of any shares after the listing for six months, and a contractual lockup period for 12 months.

Aramco cannot list additional shares for a period of six months after trading starts, and will also be restricted from issuing additional shares for 12 months.

The offering for institutional investors will begin on Nov. 17 and end on Dec. 4, while retail investors will be able to bid for the shares from Nov. 17 to Nov. 28, the prospectus said.

“Aramco IPO is an opportunity that shouldnt be missed, the largest company in the world....holding aramco shares is an absolute gain”, a Saudi with a twitter handle named Abdulrahman wrote.

Aramco has been in talks with Gulf and Asian sovereign wealth funds and wealthy Saudi individuals to secure top investors of the IPO, but no anchor investor is yet to formally agree to a deal.

The Russia-China Investment Fund is working to attract Chinese investors for Aramco’s planned IPO, the head of Russia’s RDIF sovereign wealth fund said on Thursday.

Bankers have told the Saudi government that investors will likely value the company at around $1.5 trillion, below the $2 trillion valuation touted by Prince Mohammed when he first floated the idea of an IPO nearly four years ago.

Initial hopes for a 5% IPO on domestic and international bourses were dashed last year when the process was halted amid debate over where to list Aramco overseas.

Aramco said the timetable was delayed because it began a process to acquire a 70% stake in petrochemicals maker Saudi Basic Industries Corp.

The prospectus said Goldman Sachs was named as stabilizing agent for the deal.

Analysts from banks working on the Riyadh bourse have projected a wide valuation range between $1.2 trillion to $2.3 trillion.

At the top valuation of $2 billion, Aramco could potentially raise $40 billion, topping the record-breaking $25 billion raised by Chinese e-commerce giant Alibaba in 2014.

The valuation would be almost twice that of Microsoft, currently the world’s most valuable listed company, and seven times that of Exxon Mobil Corp, the biggest listed oil major by market capitalization.

“Due to its size and likely free float, Aramco should be eligible for fast-track inclusion in both the FTSE and MSCI Emerging Market indices within 10 days of the IPO,” said Dominic Bokor-Ingram, senior portfolio manager, frontier markets, Fiera Capital (Europe).

Additional reporting by Marwa Rashad in Riyadh and Rania El Gamal in Dubai and Tom Arnold in London; Editing by Sonya Hepinstall and Jonathan Oatis

Our Standards:The Thomson Reuters Trust Principles.

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November 10, 2019 at 05:31AM

SFU, UBC students warned to prepare ‘alternative transportation’ as transit dispute impacts mount - Global News

Post-secondary students in Metro Vancouver are being warned to prepare “alternative transportation” to and from campus, as further job action and service disruptions threaten to ramp up the ongoing transit worker dispute.

The union representing 5,000 bus drivers, SeaBus operators and maintenance workers began a uniform ban and maintenance overtime ban on Nov. 1, the latter of which has led to SeaBus sailing cancellations and mounting bus route service reductions.

READ MORE: Metro Vancouver transit strike: Here’s how your commute may be affected

Service returned to normal levels Saturday and is expected to remain steady for the long weekend. But the union and Coast Mountain Bus Company have both warned disruptions could begin again Tuesday. The union has also said further job action could begin after Remembrance Day, including a bus operator overtime ban.

On Saturday, Simon Fraser University sent a note to students, faculty and staff to consider carpooling, carsharing and other transit alternatives, particularly to and from its Burnaby campus on Burnaby Mountain.

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The university said it has set up additional street parking in the eastbound lane on University Drive East to accommodate an increase in vehicle traffic. An additional shuttle bus is also in effect between that area and the main campus.

A map of the temporary additional parking area close to Simon Fraser University’s main Burnaby campus, along with shuttle bus stops in the area that can take students, faculty and staff to and from the campus and the parking area. Simon Fraser University

The University of British Columbia, BCIT, and other post-secondary institutions in Metro Vancouver have also provided notices and links to services that students and staff should consider as service disruptions worsen.

All of these schools have warned classes and exams will continue to run as normal throughout the job action and potential strike. Anyone who feels they may be late or unable to attend are advised to speak to their instructors or faculty advisor.

Here’s a rundown of the various transportation alternatives available to students faculty and staff.

2:19More service affected by overtime ban as transit strike continues

More service affected by overtime ban as transit strike continues

SkyTrain and other transit

Because the job action does not impact SkyTrain, West Coast Express or BC Transit, some campuses remain easily accessible by transit not controlled by Coast Mountain Bus Company.

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Those include SFU’s Vancouver and Surrey campuses and Kwantlen University’s Richmond campus.

The University of Fraser Valley, which is home to several students based in Metro Vancouver, can also be reached by West Coast Express and BC Transit.

Carpooling

As B.C. waits for Uber and Lyft to hit the roads, Poparide is offering something slightly different: essentially paid hitchhiking.

The service, which began as a shared ride service between cities, is now being offered as a way for students to buy seats in vehicles headed to their school of choice.

Every major post-secondary institution in Metro Vancouver is represented — including SFU, UBC, BCIT, Emily Carr, Capilano and Kwantlen — with students and staff listed as Poparide members.

READ MORE: Metro Vancouver transit dispute Day 9: Service back to normal as long weekend begins

If those members are heading to or from campus at the same time as you, you can buy a seat in their vehicle for as low as $5 and get picked up on the way.

Students also get $5 worth of free rides if they verify their student email through the website.

If you don’t want to pay, students and staff are urged to seek out carpooling opportunities with classmates or colleagues.

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And while it’s essentially a taxi service redressed as ridesharing, Kater has made itself available as an Uber stand-in, though for now it’s only operating in Vancouver.

1:20Transit strike now impacting bus service

Transit strike now impacting bus service

Car sharing

Car-sharing services like Car2Go, Evo and Zipcar are provided parking spots at most campuses, even if they’re outside the regular “home zone” of Vancouver.

However, the cars themselves are first-come, first-serve, with no guarantee one can be found anywhere close by when you need it.

Some schools like Emily Carr offer free registration codes for some services. More information can be found on the various school websites.

READ MORE: Bus company head says pay cut would not help end Metro Vancouver transit strike

Cycling

All schools in Metro Vancouver have designated bike lockup areas, and some of them have covered and secure bike lockers.

Schools are also pointing students and staff to Mobi, Vancouver’s bike share program. Some schools provide discount codes for monthly or yearly passes.

24:16Focus BC: November 8, 2019

Focus BC: November 8, 2019

© 2019 Global News, a division of Corus Entertainment Inc.

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November 10, 2019 at 06:18AM

Several pros and cons to Kelowna's low unemployment rate - Kelowna News - Castanet.net

Photo: Contributed

Kelowna’s unemployment rate in October remained at 4.1 per cent for the second straight month, and the number hasn’t wavered much over the last 12 months.

The bottom line is Kelowna continues to have one of the lowest unemployment rates among Canadian cities and sits in the province with the lowest mark as well.

Robert Fine, who is Kelowna’s director of business and entrepreneurial development, believes the city’s strength in its major sectors is a driving force behind the low rates.

He also credits StatsCan numbers that indicate as much as two per cent economic annual growth in the city.

For more on this story, visit Okanagan Edge.

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November 09, 2019 at 10:00AM