Andy CritchlowVerified account

Its more like a penny stock pumper scheme . Sell to followers.

Yes the current available liquidity "cash" in the local #SaudiArabia market #Tadawul can handle 10% of #AramcoIPO and that is more than enough to handle #Saudi_Aramco locally at the proper evaluation at or above $2 trillion #OOTT #OPEC

That’s what I’ve been saying. In one pocket, out the other. It also creates an element of political risk. Imagine that oil prices plunge and Aramco shares sink. You’re going to have a lot of irate citizens.

Do you honestly think the motivation of the IPO is to help the economy?

You can purchase sacrificial goats at ATMs in some countries

Your point may be valid. Article points out that this is the start of an advertising blitz. Banks should make their own decisions about who to lend $ to. Saudi economy is oil dependent - what will Aramco do with $

Saudi state is the main shareholder of Saudi banks, not the main source of Deposits in banks. Capital is only a line in a Balance sheet. Loans granted to retail buyers will be funded using Deposits from other retail customers., and those Deposits are largely enough for Aramco IPO

Boost the money supply. Could be inflationary at the margins. But in case the price momentum turns negative, the downward spiral would becoming self reinforcing. The least that can be said is that it s not a by the book privatisation.