Saudi's selling, not everyone’s buying

Balance of Power From FOLLOW US SUBSCRIBE   It was a strong debut today for the world's biggest initial public offering. Shares of Saudi Aramco jumped 10%, the daily limit, in Riyadh. Its market value is a whopping $1.88 trillion. There was never any possibility of the listing flopping. For Aramco isn't just any old oil company. It's the state money-spinner for Saudi Arabia, and its power and prestige echoes that of the Kingdom's rulers, including its young Crown Prince, Mohammed bin Salman. Prince Mohammed touted the IPO to raise money for projects that could wean the country off oil. He's pushing a blueprint known as "Vision 2030" to attract foreign investment, balance the budget and privatize government assets. He's lifted a ban on women driving and relaxed dress codes, in part to try and attract more tourists. But not everyone is buying the promise. Aramco opted for a local listing, and it relied almost entirely on Saudi and regional investors to take up the shares. The kingdom's wealthiest families were pressed to buy, and Saudi government institutions alone invested almost $2.3 billion. Prince Mohammed faces an offshore backlash over Yemen — where a Saudi-led coalition has fought Iranian-backed Houthi rebels since 2015, leading to a humanitarian disaster. There was an international outcry over the murder of columnist and critic Jamal Khashoggi. Aramco is part of the bid to fashion a "new" Saudi. But Prince Mohammed may need to do more to rework the economy and build international faith in its future. — Rosalind Mathieson Employees monitor Aramco's trading price in the investment branch of the Arab National Bank in Riyadh. 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Algerians have been in the streets for nine months demanding the right to choose a president with popular support, but in tomorrow's vote, their choice will be between five regime loyalists. Bougainville moved a step closer to becoming an independent nation today after results from a referendum showed an overwhelming majority — 98% — want the province to cut its ties with Papua New Guinea. Tell us how we're doing or what we're missing at balancepower@bloomberg.net. And finally ... Alberto Fernandez's inauguration yesterday as Argentina's new left-wing president wasn't without its drama. A senior Trump adviser flew to Buenos Aires but skipped the ceremony upon learning a top minister to Venezuela's Nicolas Maduro would be there. The right-wing administration in Brazil — which was sniping with Fernandez even before he took office — indicated it'd skip the event, but Deputy President Hamilton Mourao was dispatched at the last minute. Tricky waters ahead: Fernandez greets the crowd at the National Congress. Photographer: Lalo Yasky/Getty Images.   You received this message because you are subscribed to the Bloomberg Politics newsletter Balance of Power. You can tell your friends to sign up here.   Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022