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As shares in Saudi Aramco surged in value on their debut,
Professor John Colley, Associate Dean at Warwick Business School, said:
"One senses that the Crown Prince will get his own way in the end with a $2 trillion valuation for Saudi Aramco.
"It has been his determination since the very idea of an IPO was mooted. Despite much contrary advice from his advisors that the business was only worth between $1.2 and $1.5 trillion, he has pressed ahead.
"They have had to launch the IPO on their own stock exchange as the valuation was unlikely to be achieved elsewhere. Tax and dividend arrangements have also been changed to make it more attractive.
"However, a surging price on launch suggests that buying may be from those affiliated to the crown prince. After all, if this IPO goes well there will be further Aramco issues which will no doubt produce major fees for advisors."
