Saudis scramble to raise cash for Saudi Aramco share sale

Aramco said it plans to sell an unspecified number of shares on the Saudi stock exchange Tadawul. (AFP)
Updated 08 November 2019

Saudis scramble to raise cash for Saudi Aramco share sale

RIYADH: From tapping lenders to selling personal assets, Saudis are scrambling to raise cash to invest in Saudi Aramco stocks after the oil giant announced its blockbuster market debut.

The company said it plans to sell an unspecified number of shares on the Saudi stock exchange Tadawul. Retail investors in Saudi Arabia still appear to be salivating at the prospect of owning a piece of the world’s most profitable company.

“Some (Saudis) have started to sell other stocks in preparation to buy Aramco (shares),” said Ibrahim Ahmed, a Saudi energy industry analyst who is also considering investing his savings.

“People look at it as a sound investment. (But) I’m aware that it is a long-term investment that is good to have in a portfolio and not some kind of lottery ticket.”

Fahad Hashemi, portfolio manager at the Riyadh-based Middle East Financial Investment Co, said his firm had a “strong intention” to participate.

Eid Al-Shamri, chief executive of investment bank Ithraa Capital, said some Saudis were considering selling their homes or borrowing money to purchase shares.

“This is definitely a serious event that will be recorded in the history of Saudi Arabia,” Shamri told Bloomberg News. “A lot of people are talking about it. But what is the extent of the people’s participation? We are tightening our belts.”

In a 21-page document released by the company, the company called the IPO a “unique investment proposition.”

Aramco Chief Executive Amin Nasser said the company was committed to offer shareholders “long-term value creation.”

To promote participation by all sections of Saudi society, divorced women or widows with minors will be eligible to receive bonus shares, local media reported.


Lebanon removes banking secrecy rules to fight corruption

Updated 55 min 31 sec ago

Lebanon removes banking secrecy rules to fight corruption

  • The move opens the way for investigations into bank accounts of current and former officials such as Cabinet ministers

BEIRUT: Lebanon’s parliament approved on Thursday a law to remove decades-old banking secrecy rules in order to better fight rampant corruption that has pushed the country to the edge of economic collapse.
The move opens the way for investigations into bank accounts of current and former officials such as Cabinet ministers, legislators and civil servants, state-run National News Agency reported.
The restoration of stolen public money in the corruption-plagued nation has been a key demand of protesters who have been demonstrating since mid-October against Lebanon’s ruling elite, which they blame for widespread corruption and mismanagement.
The approval of the law came two months after the Cabinet approved a draft resolution to abolish the country’s banking secrecy laws, which have turned tiny Lebanon into the region’s Switzerland, attracting clients from around the Arab world who prized the anonymity its banks offered.
The new law gives powers to National Anti-corruption Commission and a Special Investigative Committee at the central bank to investigate bank account of officials, the report said.
For Thursday’s session, Lebanese lawmakers convened inside a Beirut theater so that they could observe social distancing measures imposed during the pandemic. Dozens of anti-government demonstrators briefly clashed with riot police outside as legislators met.
As lawmakers in face masks arrived at the theater, known as the UNESCO palace, paramedics sprayed them with disinfectant before they entered, one at a time.
Lebanon has been facing its worst economic crisis in decades, with unemployment figures soaring and the local currency losing more than half of its value against the dollar.
After the banking secrecy measure was passed, Parliament Speaker Nabih Berri suspended the session until later in the afternoon when the legislators were to discuss a draft general amnesty law.
The amnesty issue has deeply divided parliamentary blocs, with Christian groups calling for pardoning Lebanese who fled to Israel after it ended its occupation of southern Lebanon in 2000, while former Prime Minister Saad Hariri and others want the release of hundreds of Islamists held as terror suspects.
Lebanon and Israel are at a state of war and some Lebanese who fled to Israel now hold Israeli citizenship. Scores of protesters demonstrated in Beirut and southern Lebanon on Thursday against pardoning those living in Israel.