Aramco’s IPO could be as big as USD 1.5 tn thanks to tax cuts

Saudi Aramco’s IPO could be as big as USD 1.5 tn after the government announced it was cutting the company's tax rate to 50%, according to analysts at Sanford C. Bernstein & Co. and Rystad Energy AS. Bernstein analysts predict that the tax cut will increase Aramco’s after-tax income by 300%, allowing for higher cash returns to shareholders, while Rystad Energy increased its valuation of Aramco by 250%, Bloomberg reports.