Aramco IPO is the centerpiece of Saudi Vision 2030. $2 trillion valuation is desired. But Aramco pays a 20% royalty and 85% tax rate. Net present value of earnings only a fraction of desired valuation. But Saudi Arabia budget depends too heavily on Aramco royalties and taxes to lower them. There may be a different solution. When Saudi Deputy Crown Price Mohammed bin Salman (MbS) unveiled the Vision 2030 transformation plan last spring, selling a stake in Aramco (Private: ARMCO ) was the centerpiece. At first, it had been planned for 2017, and now for 2018, but it may slide to 2019 or later. And in my view, it may not happen at all. Although it makes sense conceptually for the royal family to monetize oil assets, converting them to cash, which they can use to diversify their risks, there are some major feasibility issues. First and foremost, […]