Saudi Aramco IPO

smurfjed

Got an email inviting me to participate in the Saudi Aramco IPO.

what are the general thoughts on this?

Jim2007

smurfjed wrote: »

Got an email inviting me to participate in the Saudi Aramco IPO.

what are the general thoughts on this?

There is a reason why IPOs offered to the public generally fall in price after the initial excitement - you don't sell over priced sh*t to your friends.

neris

I wouldn't touch anything being IPO'd the last few big IPO's have been disasterous never mind the failure of we work to even get that far. From reading and watching the likes of Bloomberg & CNBC businesses that run well and efficiently are choosing other methods of funding & share selling and staying away from public offerings

Sabre Man

Are you comfortable supporting the country behind the barbaric killing of Jamal Khashoggi?

smurfjed

@Sabre man, slightly off topic, but if we want to draw this line in the sand, where does it end ?

Jim2007

smurfjed wrote: »

@Sabre man, slightly off topic, but if we want to draw this line in the sand, where does it end ?

It ends with the investor, if you want to come up with some kind of reasoning that makes you happy to invest in sin stocks that is up to you. But such client restrictions are not at all uncommon. When signing up new clients these days there is an entire section to be filled out on such restrictions. Restrictions on not investing in companies that support the Republican Party is now a common requirement for certain US clients and so on.

You may not be interested in how you make your money, but a lot of clients are and some even require penalties for a mistake on the advisor's side.

Bob Harris

The biggest selling point is a projected 5% dividend yield in line with the likes of BP, Exxon and Shell.

JMMCapital

The fact that MBS is putting pressure on local saudi families to buy into the IPO tells something... avoid

neris

Bob Harris wrote: »

The biggest selling point is a projected 5% dividend yield in line with the likes of BP, Exxon and Shell.

5% is all well and good but its not much comfort if this thing flops on the opening bell, at least with the 3 mentioned you have history and some ability to track prices and historical data related to each companies price fluctuations

Bob Harris

neris wrote: »

5% is all well and good but its not much comfort if this thing flops on the opening bell, at least with the 3 mentioned you have history and some ability to track prices and historical data related to each companies price fluctuations

That's why I mentioned them. I wouldn't go near it when you have other proven alternatives offering the same dividend.

smurfjed

As they are in the news today, stock price has risen 39% since the IPO. And it looks like they will have a good dividend payout.

“Saudi energy company Aramco said Sunday its profits jumped 90% in the second quarter compared to the same time last year, helping its half-year earnings reach nearly $88 billion”

crushproof

Very nice for anyone who got in. Indeed anyone who stuck with O&G firms.