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[womfalcs3]

http://www.cnbc.com/2016/04/25/saud...mco-to-be-valued-at-more-than-2-trillion.html

Saudi Arabia confirmed on Monday that it planned to sell a stake of its state oil giant Saudi Aramco which was expected to be valued at more than $2 trillion.

The sale would be less than 5 percent of the company and would be via an initial public offering (IPO), Deputy Crown Prince Mohammed bin Salman said in a television interview with the Al Arabiya News Channel.

Prince Mohammed bin Salman was asked, "why less than 5%?". He said the world couldn't handle that big of a company.

 

[BeforeU]

wtf, hollyshit

 

[Skellig Gra]

So the whole company is worth 40 trillion? That's a sweet plum.

 

[Blastoise]

wait its going ahead? crazy time over at SA

I bet Russia will retaliate.

 

[kurahador]

No one is going to buy them....right?

 

[WinFonda]

gettin out while the gettin's good

 

[Broken Joystick]

Kanye is pissed

 

[sohois]

Not sure I see the value of this for investors. There are plenty of ways to bet on oil prices already. And I can't imagine that Aramco will have the corporate governance necessary for them to outperform the industry in general.

 

[Culex]

It's an estimate based on the perceived reserves of the oil fields.

 

[NoblesseOblige]

Let's buy it, GAF.

 

[Cindres]

So who wants to chip in with me? I'll chuck in a fiver.

 

[darkinstinct]

So the whole company is worth 40 trillion? That's a sweet plum.

No, the whole company is worth 2 trillion of investments all around the world.

 

[MagicWithEarvin]

GAF, we need to start an oil business.

 

[Maximo]

GAF, we need to start an oil business.

GAF Liquid Gold.

 

[Charlatan]

So the whole company is worth 40 trillion? That's a sweet plum.

No, they're saying the whole company is expected to be valued at 2 trillion. And they're selling a 5% stake in it.

They should have done this when oil prices were high, right now it's not the best of times to do this. Might be a good deal for buyers, though, depending on how they structure it.

 

[spekkeh]

It's an estimate based on the perceived reserves of the oil fields.

So it's their maximum finite turnover? Then where's the dividend coming from?

 

[psynergylover]

do they except bits of string?

 

[Joni]

No, they're saying the whole company is expected to be valued at 2 trillion. And they're selling a 5% stake in it.

They should have done this when oil prices were high, right now it's not the best of times to do this. Might be a good deal for buyers, though, depending on how they structure it.

Unless they need the money right now to support their government because they don't have as much income due to low oil price.

 

[Omni]

Let's buy it, GAF.

I'm sure if three or four of us pool together some cash, we'll have more than enough.

 

[Tawpgun]

Yeah even if I had the money not touching that with a 10 foot pole

 

[TheRealTalker]

biggest IPO in history

and that is just 5% lol

 

[Subpar Scrub]

do they except bits of string?

Probably. Bits of string would have a hard time bidding anyway.

I do wonder if they accept bits of string, though.

 

[Nightbird]

That was just 5%??

 

[nephilimdj]

So they are valuing themselves at 6 times there revenue in 2014? As I member of Dragons Den, I am out, its up to Debra Meaden (Unless shes busy on great British bake off)

 

[Palette Swap]

Let's buy it, GAF.

I'm sure if we launched a Kickstarter, we could totally get these $100bn for that stake.
I have a 30bn reward tier which includes lunch with me.

 

[Breakage]

What does $2 trillion dollars even look like?

 

[Fuzzery]

I'm sure if we launched a Kickstarter, we could totally get these $100bn for that stake.
I have a 30bn reward tier which includes lunch with me.

Yeah thats a decent reward system, I'd even invite ppl over for some mario kart if they break 60bn

 

[lucebuce12]

What does $2 trillion dollars even look like?

It's just two $1 trillion notes.

 

[womfalcs3]

So they are valuing themselves at 6 times there revenue in 2014? As I member of Dragons Den, I am out, its up to Debra Meaden (Unless shes busy on great British bake off)

They have 260 billion barrels of recoverable oil as of today. Plus a lot of natural gas.

 

[nubbe]

What does $2 trillion dollars even look like?

it's just trillions

 

[NotLiquid]

Kanye is pissed

SA is about to get this paper

 

[Log4Girlz]

buy it back America

 

[Famassu]

What does $2 trillion dollars even look like?

http://www.wired.com/2011/09/stacking-one-trillion-dollars/

x 2

 

[milanbaros]

Does this mean they'll have to disclose reserves?

 

[GhostTrick]

What does $2 trillion dollars even look like?

Two like this :")

 

[Breakage]

http://www.wired.com/2011/09/stacking-one-trillion-dollars/

x 2

Damn this is crazy.

 

[Yoda]

They are overhyping this overvalued oil company. The reason they are selling 5% is to avoid the embarrassment of not being able to sell all the shares (if they sold more).

 

[Clefargle]

So how long until we see the worlds first trillionaire?

 

[Tawpgun]

So how long until we see the worlds first trillionaire?

I wonder if trillionaires have existed in history if you take into account market value and such adjusted for time and inflation

 

[womfalcs3]

So how long until we see the worlds first trillionaire?

They say King Abdullah of Saudi was one of the world's richest. His wealth (as many of Saudi monarchs') is not public. He did spend 12 billion dollars of his own money on two academic/research centers in Saudi Arabia.

 

[May16]

No one is going to buy them....right?

I dunno man I've been saving up for a while.

 

[aeolist]

this will be really interesting. if they have to run aramco as a public company will they still be able to get away with basically giving everyone in saudi arabia a cushy job? will the innumerable royal family members get to keep their ridiculous sinecures?

 

[Yoda]

So how long until we see the worlds first trillionaire?

Most ultra rich people (especially inherited wealth) hide it. People like Mark Zuckerberg and Bill Gates don't have a choice in being known as ultra rich because their wealth is derived from the stock price of Facebook and Microsoft respectively (granted Bill Gates has started a quasi hedge fund w/Berkshire Hathaway for his philanthropic efforts). Regardless, if your wealth is printed in magazines, dodges estate tax is going to be very difficult. The Rothschild family dwarfed the Rockefeller Family (at it's peak nonetheless) and if you google the network of any Rothschild it looks pretty unimpressive. But most of the Rothschild wealth is stashed away in private companies, where there is little government oversight; I'm sure it's higher than reported. Not saying they are trillionares, but I'd wager they are easily in the XXX billion range.

 

[sflufan]

this will be really interesting. if they have to run aramco as a public company will they still be able to get away with basically giving everyone in saudi arabia a cushy job? will the innumerable royal family members get to keep their ridiculous sinecures?

Excellent point indeed!

I personally can't wait to see the attempts at "transparency" that the Saudi government will claim with this.

 

[andythinkpad]

Iranian hacks are getting ready to matrix the fuck out of their server.

 

[TheMan]

They say King Abdullah of Saudi was one of the world's richest. His wealth (as many of Saudi monarchs') is not public. He did spend 12 billion dollars of his own money on two academic/research centers in Saudi Arabia.

Interesting. So bill gates, Carlos slim, etc being the richest in the world wasn't really true. I mean, assuming the king owns a sizable share of that oil company, his wealth would have dwarfed those other guys

 

[Alex Anderson]

I wonder if trillionaires have existed in history if you take into account market value and such adjusted for time and inflation

Yep. According to this https://en.wikipedia.org/wiki/List_of_wealthiest_historical_figures

Augustus Caesar adjusted 4.6 trillion

 

[Clefargle]

Most ultra rich people (especially inherited wealth) hide it. People like Mark Zuckerberg and Bill Gates don't have a choice in being known as ultra rich because their wealth is derived from the stock price of Facebook and Microsoft respectively (granted Bill Gates has started a quasi hedge fund w/Berkshire Hathaway for his philanthropic efforts). Regardless, if your wealth is printed in magazines, dodges estate tax is going to be very difficult. The Rothschild family dwarfed the Rockefeller Family (at it's peak nonetheless) and if you google the network of any Rothschild it looks pretty unimpressive. But most of the Rothschild wealth is stashed away in private companies, where there is little government oversight; I'm sure it's higher than reported. Not saying they are trillionares, but I'd wager they are easily in the XXX billion range.

Yeah I know that. I'm just wondering how long, at this rate until an individual becomes the first modern trillionaire.

 

[hemo memo]

Here is the full interview (in Arabic)

http://youtu.be/uhWfUK0aizw

 

[ThatGayWolf]

do they except bits of string?

Yes, payment in string is excepted from this deal.

Spoiler

by which I mean not accepted