Aramco's Privatization and IPO Dilemma: Timing and Valuation (Grade 8,3)

Aramco's Privatization and IPO Dilemma:
Timing and Valuation

2nd Case Study




Maastricht University
School of Business and Economics

, Case Study: Aramco's Privatization and IPO Dilemma: Timing and Valuation




Table of Contents

Table of Contents……………………………………………………………………………………2

Introduction…………………………………………………………………………………….…....3

1. Factors to consider for making Aramco a private company …………………..…..……3
a. Advantages……………………………………………………..……………………..……...3
b. Disadvantages………………………………………………………………..……….……..4
c. Timing……………………………….…………………………………….…………….……5

2. Valuation……………………………………………………………………….....………..6
a. Oil price metric………………………………………………………………………………..6
b. Multiple comparable………………………………………………………………………….7
c. DDM……………………………………………………………………………………………9
d. DCF……………………………………………………………………………………………11
e. Sensitivity……………………………………………………………………………………..12

3. Conclusion……………………………………………………………………….………..13

References………………………………………………………………………………………….15

Declaration of Originality ……………………………………………………….………………..16




2