justinterested

4 ms·

1. 1.▲
   by justinterested 9y ago

   By the way, I think he has most of what you have stated in it in another post. Just search for " Investor Risks associated with Saudi ARAMCO IPO" in Google. https://goo.gl/QnT6gi
2. 2.▲
   by justinterested 9y ago

   I tend to kind of agree that a very high discount rate is appropriate, but, I do not see how Saudis will agree to even discussing 30% let alone 50% discount rate. They will rather quietly go to Institutional Investors Pre-IPO and allow them
3. 3.▲
   by justinterested 9y ago

   Any DCF model will not directly plug in assumptions. These assumptions impact the Discount Rate (r). Investors look at the same assumptions and may arrive at different Discount Rates.
4. 4.▲
   by justinterested 9y ago

   Here is the link to Vision 2030, but no mention of anything http://vision2030.gov.sa/en
5. 5.▲
   by justinterested 9y ago

   I think a fair point to add is the fact that Saudi's probably misspoke before the IPO leading to this piercing analysis from various analysts. Perhaps they know that the price is way less than 2 Trillion Dollars and will be happy with
6. 6.▲
   by justinterested 9y ago

   Undoubtedly, they do have plenty of oil and may find more. The political risks and uncertainty around that region is the big problem really. Middle East has so far been stable (atleast the GCC). With Qatar problem, it makes the investors ne
7. 7.▲
   by justinterested 9y ago

   And, also the fact that more oil would be found as the Artic starts cooling. Most of the Artic is with Russia, Norway and Canada.
8. 8.▲
   by justinterested 9y ago

   Good point. What would you consider an appropriate Discount Rate in this case ?