Saudi Aramco Launches IPO | Weekly News Update

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Saudi Aramco Launches Long-Awaited IPO

The Saudi Arabia stated-owned oil company, Saudi Aramco, has officially launched its long awaited Initial Public Offering (IPO).  After four years of delays, it is set to be the largest ever IPO as the company is aiming for a $2 trillion valuation.  The number has been in question by many and most sources believe it will be closer to $1.5 trillion.  Saudi Aramco plans to start selling shares on its domestic exchange- known as Tadawul – in December and then expand internationally after that.  It has not yet been announced how much of the company will be sold or at what price.

The launch of the IPO could bring additional geopolitical risk as well.  With a large, long awaited event going forward, it could prompt Iran or rebel groups to attack Saudi Arabia during the launch.

October Class 8 Truck Orders Hits Highest Level in 11 Months

Preliminary numbers for total North American Class 8 truck orders in October show orders rose to its highest monthly level since November 2018.  The ACT Research estimated total orders of 22,100 units, which is still significantly less than the 43,256 orders the industry saw last October.  Freight Transportation Research Associates (FTR) also estimates over 22,000 orders.  Despite the growth in truck orders month-over-month, October is typically a strong month for new orders.  This year’s orders for October is the lowest amount since 2016.


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WSJ: Saudi Aramco Launches Long-Awaited IPO

Saudi state oil giant Aramco officially launched its initial public offering on Sunday, setting in motion what is expected to be the world’s largest ever share sale, even as questions remain over the company’s value.

Reuters: OPEC sees its oil market share shrinking, lowers demand view

OPEC will supply a diminishing amount of oil in the next five years as output of U.S. shale and other rival sources expands, the exporter group said, despite a growing appetite for energy fed by global economic expansion.

Bloomberg: Biggest OPEC+ Producers Aren’t Pushing for Deeper Oil Cuts

The Organization of Petroleum Exporting Countries and its allies are more likely to stick to their current output targets and encourage members to comply more fully, the delegates said, asking not to be identified because the talks are private. The producers, representing about half of global supply, meet in Vienna on Dec. 5 and 6.

 

Top Freight Transportation Stories

WSJ: Shipping Imports Slipping While Companies Are ‘Burning Off’ Inventories

U.S. logistics operators say shipping imports are waning heading into the holidays in a sign that companies may be paring down inventories after stocking up heavily to get goods in place ahead of new tariffs.

Transport Topics: CARB Rule Would Set Sale Quotas for Zero-Emission Trucks

The California Air Resources Board has proposed a regulation requiring that manufacturers sell a set percentage of zero-emissions battery-electric and fuel cell trucks beginning with model year 2024.

Ship & Bunker: Maersk Adds Battery Power to List of Trial Tech

Maersk said they will test the use of containerized battery power as part of efforts to reduce its carbon footprint.  The 600 kWh marina battery system will be installed in a trial on board the Maersk Cape Town in December 2019.

Transport Topics: October Class 8 Orders Highest in 11 Months

Preliminary net Class 8 orders for October, a bellwether month, were 22,100 and the highest in 11 months, ACT Research reported.  A year earlier, net orders climbed to 43,256.

 

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 WSJ: Trump Says U.S. Hasn’t Yet Agreed to Roll Back Tariffs as Part of China Trade Deal

President Donald Trump said the U.S. hasn’t yet agreed to a rollback of tariffs, disputing a statement from China’s Commerce Ministry on Thursday that tariff relief would be part of the first phase of a trade accord between the two nations.

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WSJ: Bank of England Forecasts Modest Economic Boost if Brexit Plan Passes

The Bank of England said it expects the U.K. economy to pick up modestly over the next three years if lawmakers back Prime Minister Boris Johnson’s Brexit deal and the country pursues a free-trade accord with the European Union.

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