Saudi Aramco valuation seen topping US$1 trillion after government cuts tax

Dubai

SAUDI Aramco could have a market value of more than US$1 trillion in an initial public offering (IPO) after the government slashed the oil producer's tax burden to attract investors, analysts at Sanford C Bernstein & Co and Rystad Energy AS said.

The tax cut will increase Aramco's after-tax income by 300 per cent, allowing for higher cash returns to shareholders and giving the company, known officially as Saudi Arabian Oil Co, a potential market value of US$1 trillion to US$1.5 trillion, Bernstein analysts said in a report.