Breakingviews - Aramco’s $1.7 trln price tag pleases almost no one

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Breakingviews - Aramco’s $1.7 trln price tag pleases almost no one
France Dernières Nouvelles,France Actualités
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(Reuters Breakingviews) - Saudi Aramco has gone for a suboptimal compromise. The...

Members of media chat before the start of a press conference by Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019.

Valuing Aramco shares at between 30 riyals and 32 riyals is a step forward. The narrow range implies a high level of confidence in demand for the offering, which will give Saudi’s Public Investment Fund around $25 billion to help diversify the kingdom’s economy away from oil. Crown Prince Mohammed bin Salman’s willingness to accept a valuation below his preferred target shows an unusual capacity for compromise.

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