Saudi Shareholders

In an effort to boost the value of Aramco (Saudi Arabian Oil Company) to $2 trillion, the Saudis reduced the offering size to just 1.5% from 5%, listed it on the Saudi stock exchange and not in NY or London, and marketed heavily to domestic investors willing to overpay. Now local shareholders are directly dependent on Aramco’s performance, negating the raison d’être of the public offering of economic diversification.