FMP
May 28, 2024 10:53 AM - Parth Sanghvi
Saudi Arabia is planning a multi-billion-dollar share sale in energy giant Aramco (TADAWUL: 2222) as soon as June, potentially raising around $10 billion. This could become one of the region's biggest stock deals. The shares will be listed in Riyadh, and it will be a fully marketed offering rather than an accelerated sale. The details are still being finalized, according to sources who spoke on condition of anonymity.
Aramco, the world's largest oil company, remains a cornerstone of Saudi Arabia's economic strategy. The Saudi government, which holds a 90% stake in Aramco, heavily relies on its payouts. Aramco expects to pay $31 billion in dividends despite reporting lower earnings for Q1 2024 due to reduced oil prices and volumes.
The share sale aligns with Saudi Arabia's Vision 2030, an ambitious plan to diversify the economy and reduce dependency on oil revenues. Expanding the private sector and fostering non-oil growth are key objectives of this initiative.
Since its IPO in 2019, Aramco shares have experienced significant volatility, with an initial public offering price of 32 riyals peaking at 38.64 riyals last year. The shares closed at 29.95 riyals on Thursday.
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Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...