Markets Won't Like 'Expensive' Aramco IPO, Black Gold's Ross Says

The transcript discusses the valuation and potential risks of a Saudi IPO, highlighting concerns about its high valuation and liquidity issues due to local ownership. It emphasizes the importance of dividends as a selling point and considers the geopolitical risks and ESG trends affecting foreign investor interest. The discussion also explores potential interest from global players like China, India, and Russia, and the impact of oil prices on the company's financial outlook.

What is a major concern about the Saudi IPO's valuation?

• It is considered too low.

• It is perfectly valued.

• It is not valued at all.

• It is seen as too high.

Why might the Saudi IPO be considered illiquid?

• It is primarily locally owned.

• It is not listed on any stock exchange.

• It is primarily owned by foreign investors.

• It has no dividend policy.

Which countries are potential investors in the Saudi IPO?

• Brazil and Argentina

• Australia and New Zealand

• China and India

• Germany and France

What is a reason some sovereign wealth funds are hesitant to invest in the Saudi IPO?

• Geopolitical stability

• High oil prices

• ESG concerns

• Lack of dividends

What is a challenge for the Saudi IPO if oil prices remain low?

• Meeting capital expenditures and dividends

• Attracting local investors

• Reducing production costs

• Increasing market share