Last week’s launch of the world’s largest IPO in two years set the stage for a potentially bustling year for the markets in 2019. Saudi Aramco, the world’s largest integrated oil company, filed for its much-anticipated IPO in late November, and has now made history as the world’s largest public offering ever.
This capital raising event marks the beginning of what many predict will be a major shift in the global markets. The listing of the company’s shares on the Saudi Arabian stock exchange is expected to draw billions of dollars from investors eager for a piece of the company’s $2 trillion valuation.
The offering not only ushers in an era of investing in oil and gas companies, but it also signals a shift in the overall investing landscape. With funds being poured into the markets, investments will be made across a variety of sectors including technology, retail, healthcare, and more.
Investors can now translate this newfound investment capital into other areas. As money pours into the markets, the energy sector will benefit from the influx of capital as investors look for a play in energy prices, and the transportation sector should see increased activity as people seek out new, more efficient modes of transportation.
It doesn’t stop there. With the money from the IPO, investors can look at venture capital opportunities, start-ups, and other areas that are not yet mainstream but have the potential to become so in the near future. Additionally, the development of new technologies is likely to increase in the coming years; markets like Artificial Intelligence, robotics, autonomous vehicles and biotechnology are likely to be the focus of investment.
The Saudi Aramco IPO is an unprecedented event, and is likely to reverberate through the global markets for years to come. Investors should take note of the potential opportunities that come along with such an massive listing and be prepared to adjust their portfolios accordingly. Not only is this a pivotal moment for the energy sector, but the entire markets stand to benefit from the influx of cash and new technologies.