Saudi Arabia Mega-Fund Eyes an Electric Carmaker That’s Not Tesla

купить акции saudi electric

Despite that, Wald said the IPO could prove positive for Aramco in the long term. She anticipated the firm offering as much as 3% of its worth on the Tadawul, with hopes a lot of interest in it would drive up its valuation ahead of a possible foreign listing.

As a result, Saudi stocks are being considered for inclusion in indexes widely followed by investment professionals. The FTSE Russell in Britain is mulling whether to upgrade Saudi Arabia to emerging-market status.

As State Street observes in its report, such deals could involve a national privatization fund, which like a mutual fund could be offered to citizens at a discount, minimizing “public controversies over the sale of public assets.” In effect, it might foster a sense of inclusive capitalism, neutralizing criticism of the royal family’s excesses, like the $500 million Italian yacht the crown prince acquired, according to news reports. Since the so-called Future Investment Initiative came together a few months ago under the auspices of Saudi’s enormous Public Investment Fund, questions about the viability of a planned $100 billion initial public offering of stock in Saudi Aramco, as the national oil company is known, have intensified.

In addition to bilateral energy projects, the two countries discussed possible investments in Aramco by China National Petroleum Corp. and Chinese sovereign wealth fund China Investment Corp. Saudi Aramco, Saudi Arabia’s state-owned oil company, enjoys low production costs that give it an advantage over its competitors in other parts of the world. The rationale for Saudi Arabia is to try and secure a guaranteed price for the first slice of Aramco, rather than leaving it to the lottery of the stock market.

It added that the Saudi Capital Markets Authority will make a formal announcement about the IPO plans on Sunday. Pricing will begin Nov. 17, it said. Buying Tesla would certainly send that signal. It also would align with some of the other big projects the country is involved in, including plans to build a $500 billion megatropolis on the Red Sea coast, which will be powered by clean energy, and possibly have more robots than humans, if you believe the hype.

SoftBank, the Japanese investment giant, also invested heavily at $48.77 a share. However, SoftBank, Uber’s largest investor, also snapped up a bigger chunk of shares at a discounted $32.97, meaning it has probably still made a healthy profit overall. Uber, which allows smartphone users to hail a cab using an app, floated on the New York Stock Exchange on Friday at $45 per share, valuing the start-up at $82.4 billion (£63.4 billion) in the most highly anticipated float since Facebook in 2012.

The oil giant wants investors to accept yields on its bonds on par with the Saudi government

Rather than being sold as shares through a stock exchange, the stake could be sold directly to China or to institutional investors. Investors considering whether to invest in Aramco’s much-anticipated bond debut say the oil giant is pushing for especially low yields, despite concerns about the role of the Saudi state in the company’s finances.

Saudi Electricity Co plans to establish a power generation subsidiary, pending shareholder approval, a step viewed by analysts as a sign the state-controlled power giant is pushing ahead with a long-awaited restructuring. Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes.

The plan is to sell around 5% of Aramco shares next year on the Saudi Stock Exchange, or Tadawul, and an overseas bourse. Saudi Arabia’s Crown Prince (then-deputy crown prince) Mohammed bin Salman, left, meets Chinese President Xi Jinping in Beijing in August 2016. On 16 October, the same day that the secretary of state, Mike Pompeo, arrived in Riyadh to meet with the Saudi king and crown prince over Khashoggi’s fate, Saudi officials deposited $100m in funds that had been pledged to the Trump administration in August to help stabilize parts of Syria liberated from the Islamic State.

  • Turns out, Musk was only half right; the $250 billion Saudi fund is interested in an electric car deal indeed, but it’s not Tesla.
  • In addition to bilateral energy projects, the two countries discussed possible investments in Aramco by China National Petroleum Corp. and Chinese sovereign wealth fund China Investment Corp.
  • That will water down the influence that Saudi Arabia has on the company, and you can bet that Musk will structure any deal to make sure he’s not handing over any control.
  • The agreed purchase price for the shares is SAR 123.40 per share, totaling SAR 259.125 billion, which is equivalent to USD$ 69.1 billion.

But, despite its heft, even the large Saudi fund is unlikely to afford buying out all Tesla shareholders single-handedly. And Musk, in his latest missive, says he doesn’t expect them to. That would take about $70 billion, but Musk says he expects two-thirds of people who own shares now to stay with the company and roll over to the private Tesla. That could include other large players, like Softbank (which owns 5 percent) and pension and institutional investors. So the Saudi Arabian fund would be one partial owner amongst several—they’d all just be private owners instead of shareholders on a public exchange, with all the reporting and performance requirements that entails.

Saudi Electricity Company Company Profile

The sovereign fund has also made other tech investments, most notably $3.5 billion in Uber in 2016, as well as in Virgin’s space business and a tech fund run by Japan’s SoftBank. “Saudi Arabia is very much pushing to understand how new technology can be helpful to them,” says Knapp.

It’s no surprise that Prince Mohammed later boasted, according to the Intercept, that Kushner was “in his pocket” and had provided information about rivals in the Saudi royal family. While most attention has been focused on Flynn’s role, Kushner is entangled in several conflicts of interest around the Saudi project, according to the 24-page report from the House oversight and reform committee. One of the potential beneficiaries of a Saudi nuclear deal is Westinghouse Electric, which is owned by a subsidiary of Brookfield Asset Management, a real estate company that recently bailed out Kushner and his family’s company in their ill-fated, $1.8bn purchase of a Manhattan office tower at 666 Fifth Avenue. Saudi state media and government officials did not immediately acknowledge the report. Saudi Aramco said it “does not comment on rumor or speculation,” but did not dispute the report.

So is the American index provider MSCI, which will decide by next June whether to include Saudi shares in its MSCI Emerging Markets Index. If it does, the country’s weighting, at around 2.4 percent according to State Street, could lead to inflows of around $38 billion. That news, coming directly on the heels of the announcement of the massive Saudi investment, led to a jump in the stock, which had been trading at just above $340 a share yesterday and is now, at time of publishing, above $370. THE HAGUE (Alliance News) – Saudi Aramco announced on Sunday it will buy Shell Saudi Arabia Refining Ltd’s 50% share of the SASREF joint venture in Jubail Industrial City for USD631 million. The refinery has a capacity of 305,000 barrels per day.


The snag with the Chinese option is that Saudi Arabia has other objectives beyond raising cash to fatten the kingdom’s finances and fund social welfare. The Aramco offering is a key step toward making Riyadh a regional, if not international, capital for capital. It is part of the crown prince’s blueprint for reducing Saudi Arabia’s reliance on oil — a feat never fully achieved by a major resource economy in the modern era. Considering Saudi Arabia’s desire to diversify the country’s oil-centric economy, emerging tech sectors like electric vehicles come as a natural choice for the kingdom’s massive sovereign fund. Aside from stand-alone deals, the PIF has over $45 billion committed in SoftBank’s Vision Fund, which holds ownership in a wide array of U.S. tech companies.

The latter is a country that owes its massive wealth to Big Oil, and the former is a Silicon Valley entrepreneur determined to “accelerate the transition to sustainable energy” with electric cars and solar panels. The crown prince is banking on Riyadh’s appeal as a financial hub to meet the extraordinary ambitions of his Vision 2030 plan to move away from hydrocarbons — wise given the accelerating adoption of electric vehicles — toward other industries, including financial services. Transforming the $700 billion economy and better sharing the wealth with 33 million subjects, two-thirds of whom are under the age of 30, is of existential importance for the Saudi monarchy. Saudi Crown Prince Mohammed bin Salman, center left, and Masayoshi Son, the SoftBank chairman and chief executive, center right, at the Future Investment Initiative conference in Riyadh, Saudi Arabia, on Tuesday. Expanding the PIF with oil revenues — and using the fund to help transition the Saudi economy off of dependence on oil — has been a major strategy of Crown Prince Mohammed bin Salman.

купить акции saudi electric