Largest IPO in History - Thoughts?

Saudi Aramco hired Moelis and Lazard as advisors for the IPO. They'll probably hire more banks further down the line, but what do all the monkeys think about this? How many banks are going to be involved by the time the IPO happens, and why didn't they go with a BB? Is the $2tn valuation really justified?

 

If I'm giving you a $2 trillion IPO, then I'm paying you the fees I fucking wanna pay you, and these banks will be happy. This isn't a $2 billion IPO for a run of the mill iPhone app that has significant VC ownership and whose VCs have ties and loyalties to the banks. This is a $2 trillion IPO entirely owned by the Saudis.

I work in Asset Management, and if a small hospital is going to give us $20 million to manage a sleeve of their equity portfolio, they're going to pay a lot higher rate than if CalPERS were to give us $500 million for the same strategy.

We're not lawyers. We're investment bankers. We didn't go to Harvard. We Went to Wharton!
 
Most Helpful

Kids these days, I believe, call this a 'flex'.

Disclose massive, record setting profits for a corporate entity, dangle the carrot of diversification out in front of investors, etc, etc, etc.

The reality here is that they are playing with everyone, and probably using this as leverage within the kingdom to achieve some power play agenda - strong arming princes into dialing back spending, shutting up, or otherwise... who even knows.

The bigger question is why on earth would Aramco go public at this point? It's not like they need the outside capital... maybe as a show of 'opening' to the world... bu again, do they really care? The hassles that come with even a minor, partial listing can't possibly be worth it for them.

To the valuation? Who the hell knows. No matter what you will not be getting paid for the risk in this deal. What does the income statement look like - does it include line items for all the social benefits it funds? Prince salaries? Does cap ex include new palaces? More to the point - it's not a growth stock. You are buying, what, a hopeful dividend stock that could get re-nationalized at any moment.... good lord. Just by Exxon and call it a day.

 
Funniest

Kind of surprising they're even considering US banks for this. You'd think they'd go with a bank that has a more... acute expertise at dealing with psychotic dictatorships.

May I suggest Deutsche?

"Work ethic, work ethic" - Vince Vaughn
 

Consequatur voluptatum voluptas dolorum in accusamus. Perspiciatis est qui ratione quo maiores. Omnis est et reiciendis non ab.

Consequuntur maiores corporis voluptatum molestiae sed exercitationem labore. Mollitia commodi tenetur deserunt perspiciatis quam odit. Minus qui qui voluptatem corporis consectetur voluptatem omnis. Excepturi quasi voluptate sint repudiandae eos. Est natus repellendus quo porro quis.

Quae quos aut veniam dolor. Magni eos quisquam magnam. Atque vel omnis optio voluptatibus. Sunt eos laborum ut perspiciatis amet hic iusto. Eos et neque molestiae delectus corporis est alias voluptas. Ipsa aliquid omnis aut ea laboriosam ipsa nobis non.

Velit ut in saepe corporis at. Repellendus facilis aut et reiciendis architecto iusto quia. Fugiat suscipit ut in reiciendis qui qui occaecati.

No pain no game.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
kanon's picture
kanon
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”