Saudi Aramco has been given a $1trn valuation by Morgan Stanley, as Wall Street is still divided on how much the world’s biggest oil company is actually worth.
Aramco has been given a valuation range spanning hundreds of billions
of dollars, according to research from two Wall Street banks that
underlines the dilemma facing lenders working on what is expected to be
the world’s largest initial public offering.
In a presentation for investors, Morgan Stanley bankers ran through
several valuation models that gave a spread of about $1trn between the
most bearish and bullish scenarios. For example, based on a dividend
discount model the spread ran from $1.06trn up to $2trn.
The base case was $1.52trn, according to the presentation seen by
Aramco faces a delicate balance as it seeks to push its IPO valuation as
close as possible to Crown Prince Mohammed Bin Salman’s $2trn — a
figure that’s been met with skepticism from many professional investors —
while making sure it’s attractive to potential Saudi buyers.
Among 16 banks that offered a valuation, the range in estimates ran
from $1.1trn at the bottom right up to $2.5trn, a nuber that even the
crown prince might find optimistic. The midpoint was $1.75trn, according
to people who’ve reviewed all the research.
No comments:
Post a Comment