Saudi Aramco may be worth as little as $1.5 trillion or even less, well below the target set by the kingdom, according to research sent on Nov. 3 to potential investors by the banks involved in the company’s initial public offering. The research, according to multiple investors who reviewed it, suggests the banks are struggling to pinpoint a precise valuation for Aramco. Some banks offered a huge range—as much as $1 trillion in the case of Bank of America—between their low and high estimates.
The pre-IPO research reports, which the banks use to drum up interest on share sales, suggest Riyadh may struggle to achieve the $2 trillion valuation that Saudi Crown Prince Mohammed bin Salman has publicly desired over the last three years.
