'Risk of terror attacks': Saudi Aramco prospectus gives few details on IPO size

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November 10, 2019

Dubai, Nov 10: Saudi state oil giant Aramco will sell 0.5 per cent of its shares to individual retail investors and the government will have a lockup period of a year on further share sales after the initial public offering, its prospectus said on Saturday.

The more than 600-page prospectus did not include details of how much of the company would be floated in total or of any commitments from anchor investors.

Sources have said the company could sell 1 per cent-2 per cent on the Saudi stock market in what could be the world's largest listing.

Offering for the shares will begin on November 17, the prospectus said.

Aramco fired the starting gun on the initial public offering (IPO) on November 3 after a series of false starts. Crown Prince Mohammed bin Salman is seeking to raise billions of dollars to diversify the Saudi economy away from oil by investing in non-energy industries.

Among the risks highlighted in the prospectus were the potential for terrorist attacks and the potential for encountering antitrust legislation, as well as the right of the Saudi government to decide maximum crude output and direct Aramco to undertake projects outside its core business.

Aramco may also change its dividend policy without prior notice to its minority shareholders, it said.

Aramco's oil facilities were targeted on September 14 in unprecedented attacks that temporarily shut 5.7 million barrels per day (bpd) of output - more than 5 per cent of global oil supply.

LOCKUP PERIOD

The prospectus said the government will have a "statutory lockup period" for disposing of any shares after the listing for six months, and a contractual lockup period for 12 months.

Aramco cannot list additional shares for a period of six months after trading starts, and will also be restricted from issuing additional shares for 12 months.

The offering for institutional investors will begin on November 17 and end on December 4, while retail investors will be able to bid for the shares from November 17 to November 28, the prospectus said.

"Aramco IPO is an opportunity that shouldnt be missed, the largest company in the world....holding aramco shares is an absolute gain", a Saudi with a twitter handle named Abdulrahman wrote.

Aramco has been in talks with Gulf and Asian sovereign wealth funds and wealthy Saudi individuals to secure top investors of the IPO, but no anchor investor is yet to formally agree to a deal.

The Russia-China Investment Fund is working to attract Chinese investors for Aramco's planned IPO, the head of Russia's RDIF sovereign wealth fund said on Thursday.

Bankers have told the Saudi government that investors will likely value the company at around USD 1.5 trillion, below the USD 2 trillion valuation touted by Prince Mohammed when he first floated the idea of an IPO nearly four years ago.

Initial hopes for a 5 per cent IPO on domestic and international bourses were dashed last year when the process was halted amid debate over where to list Aramco overseas.

Aramco said the timetable was delayed because it began a process to acquire a 70% stake in petrochemicals maker Saudi Basic Industries Corp <2010.SE>.

The prospectus said Goldman Sachs was named as stabilizing agent for the deal.

Analysts from banks working on the Riyadh bourse have projected a wide valuation range between USD 1.2 trillion to USD 2.3 trillion.

At the top valuation of USD 2 billion, Aramco could potentially raise USD 40 billion, topping the record-breaking USD 25 billion raised by Chinese e-commerce giant Alibaba in 2014.

The valuation would be almost twice that of Microsoft, currently the world's most valuable listed company, and seven times that of Exxon Mobil Corp, the biggest listed oil major by market capitalisation.

"Due to its size and likely free float, Aramco should be eligible for fast-track inclusion in both the FTSE and MSCI Emerging Market indices within 10 days of the IPO," said Dominic Bokor-Ingram, senior portfolio manager, frontier markets, Fiera Capital (Europe).

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News Network
April 11,2024

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The head of the political bureau of Hamas says Israel’s assassination of his children will not make the Palestinian resistance group back down on its goals and demands in the latest round of talks aimed at reaching a truce in the Gaza war.

Ismail Haniyeh made the remarks in a phone interview with Qatar-based Al Jazeera TV network on Wednesday night, after an Israeli airstrike killed three of his sons — Hazem, Amir and Mohammad — and four grandchildren in the al-Shati refugee camp in the northern Gaza Strip. 

“Our demands are clear and specific and we will not make concessions on them. The enemy will be delusional if it thinks that targeting my sons, at the climax of the negotiations and before the movement sends its response, will push Hamas to change its position,” he said.

The Israeli military and the regime’s so-called internal security service, Shin Bet, confirmed killing Haniyeh’s sons, who were visiting relatives on the occasion of Eid al-Fitr before their vehicle was struck.

The assassination came at a time when Hamas was preparing a response to Israel’s proposal for a Gaza ceasefire delivered through mediators during the negotiations in Cairo.

Also in his remarks, Haniyeh said killing his sons would only make Hamas “more steadfast in our principles and adherence to our land.”

The resistance group, he added, would “not surrender, and […] not compromise […] no matter how great our sacrifices are.”

The Hamas leader also noted that around 60 members of his family, including nieces and nephews, have been martyred during the Gaza onslaught. 

“All our people and all the families of Gaza have paid a heavy price in blood, and I am one of them,” he said.

Haniyeh further decried Israel’s brutality in Gaza, saying the regime is conducting a war of ethnic cleansing and genocide on the besieged territory.

“There is no doubt that this criminal enemy is driven by the spirit of revenge and the spirit of murder and bloodshed, and it does not observe any standards or laws,” he stressed.

Erdogan extends condolences to Haniyeh

Türkiye’s President Recep Tayyip Erdogan has extended his condolences to Haniyeh over the deaths of several of his family members, the Turkish Communications Directorate said.

During the phone call on Wednesday, Erdogan said that Israel will be held accountable before the law for its crimes against humanity.

In addition, Turkish Vice President Cevdet Yilmaz condemned the attack and conveyed his condolences to Haniyeh.

”The Israeli administration will eventually be held accountable for these inhumane attacks under international law,” Yilmaz said on X.

Israel waged its bloody US-backed war on Gaza on October 7 after Hamas carried out its historic operation against the usurping entity in retaliation for the regime's intensified atrocities against the Palestinian people.

So far, the occupying regime has killed at least 33,482 Palestinians, mostly women and children, and injured 76,049 others.

Ansarullah’s reaction

Meanwhile, the Yemeni Ansarullah resistance group extended its condolences to Haniyeh.

“These great sacrifices … indeed strengthen the steadfastness of Palestinian people in the face of Israeli arrogance,” Ansarullah spokesman Mohammed Abdul-Salam stated.
On the threatened invasion of the city of Rafah in southern Gaza, Haniyeh said, “We will not submit to the occupying regime’s intimidation, as those who surrender will not be spared.”

Shati is the third-largest refugee camp among the eight in the Gaza Strip, and also one of its most crowded, with thousands of people living in an area of less than half a square kilometer.

Ismail Haniyeh, who now lives in Qatar, is originally from Shati camp.

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April 15,2024

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The Iranian Army Chief Commander Major General Abdolrahim Mousavi says the country will not hesitate to give a “stormy and unified” response to any act of aggression against it.

In a Monday message marking the National Army Day, Mousavi said great defensive measures of the country’s Army and Armed Forces have resulted in strong deterrent power.

Iran has conveyed its message of power to the world in a way that the world has realized that the Iranian Armed Forces will give a “stormy and unified” response to any aggression against the country’s national interests, borders and security, he added.

The top commander noted that Iran’s firm response to an act of aggression by the usurping Israeli enemy against its diplomatic premises in the Syrian capital of Damascus brought joy to oppressed nations, especially the resilient people of Palestine and Gaza.

Mousavi emphasized that the retaliatory strikes, dubbed Operation True Promise, revealed only a part of the capacity and strong will of the Iranian Armed Forces and were carried out in cooperation among the Islamic Revolution Guards Corps (IRGC) Aerospace Division, the Army, and the Defense Ministry.

He said the Army has played a key role in strengthening the country’s defense power, independence and lasting security by implementing various measures.

It has constructed strategic drone and underground tactical bases and made hundreds of modern defense achievements in the land, air, sea and space sectors in addition to advancing in the fields of science and technology, he explained.

Now the enemies lack the courage to carry out any act of aggression against the Islamic establishment and the noble Iranian nation, the top commander said.

He added that Iran has staged several joint military drills to enhance national security and dignity.

The Israeli airstrikes on Iran’s embassy compound in Damascus killed two generals of Iran’s Islamic Revolution Guards Corps (IRGC), Brigadier General Mohammad Reza Zahedi and General Mohammad Hadi Haji Rahimi, as well as five of their accompanying officers.

In response, on Saturday night, the IRGC targeted the Israeli-occupied territories with a barrage of drones and missiles. The extent of the damage on Israeli military bases across the occupied territories is yet to be specified.

Following the reprisal, Iran warned Israel against taking any retaliatory actions and also urged the US to try not to involve itself in the conflict and signaled that it viewed the matter as “concluded.”

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News Network
April 14,2024

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Tehran: Iran’s Islamic Revolution Guards Corps (IRGC) has launched “extensive” retaliatory missile and drone strikes against the occupied territories in response to the Israeli regime’s terrorist attack of April 1 against the Islamic Republic’s diplomatic premises in the Syrian capital Damascus.

The Corps announced launching the strikes in a statement on Saturday night, defining the mission as "Operation True Promise."

“In response to the Zionist regime’s numerous crimes, including the attack on the consular section of Iran’s Embassy in Damascus and the martyrdom of a number of our country’s commanders and military advisors in Syria, the IRGC’s Aerospace Division launched tens of missiles and drones against certain targets inside the occupied territories,” the statement read.

Iran's Defense Minister Brigadier General Mohammad Reza Ashtiani, meanwhile, warned that “Whatever country that could open its soil or airspace to Israel for a [potential] attack on Iran, will receive our decisive response.”

The Israeli attack had resulted in the martyrdom of Brigadier General Mohammad Reza Zahedi, a commander of the IRGC's Quds Force, his deputy, General Mohammad Hadi Haji Rahimi, and five of their accompanying officers.

The terrorist attack drew sharp condemnation from senior Iranian political and military leaders, who vowed "definitive revenge."

During a speech in Tehran on Wednesday after leading the Eid al-Fitr prayers, Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei said the Israeli regime “must be punished and will be punished” for the deadly strike on the Iranian diplomatic premises.

The Leader added, “The evil Zionist regime committed another mistake ...  and that was the attack on the Iranian consulate in Syria. The consulate and diplomatic missions in any country are considered to be the territory of that country. When they attack our consulate, it means they have attacked our soil."

In a subsequent statement, the IRGC said the retaliation came after 10 days of "silence and neglect" on the part of the international organizations, especially the United Nations Security Council, to condemn the Israeli aggression or punish the regime in line with Article 7 of the UN Charter.

Iran then resorted to the retaliatory strikes, the Corps added, "using its strategic intelligence capabilities, missiles, and drones" to attack "targets of the Zionist terrorist army in the occupied territories, successfully hitting and destroying them."

The statement, meanwhile, warned the United States -- the Israeli regime's biggest supporter -- that "any support or participation in harming Iran's interests will result in a decisive and regrettable response by the Armed Forces of the Islamic Republic."

"Furthermore, America is held responsible for the evil actions of the Zionist regime, and if this child-killing regime is not restrained in the region, it will bear the consequences," it noted.

The Corps concluded the statement by cautioning third countries against letting their soil or airspace be used for attacks against the Islamic Republic.

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