Not really that strange. I suspect that the IPO will be a major fail for the investors that participate. And if you look around the net it is easy to find information which states that it is highly likely that the production cost will raise a lot and that the overall production will fall hard. Their major old fields are in severe decline and the only reason they can hold up their production is due to 3 "reserve" fields which they have built a special refinery in order to produce from. They have no more new fields and their rig count is up 40% over the last two years in order to keep up production. Imagine the decline they must suffer at the moment. I expect Saudi oil production to start falling drastically in the next 5-10 years so no wonder they are keen on selling while they still can. I suspect they created this crisis just in order to have a proper excuse for selling.. Noone would ask questions if they sell because they need the money. Imagine if they'd try to sell it 3 years ago. People would get seriously suspicious to why they would sell then.
It is the old saying. If an arab wants to shake hands, search your fingers for all your rings afterwards...
FAR Price at posting:
7.5¢ Sentiment: Hold Disclosure: Not Held
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