Saudi Arabian Oil Co. has captured the oil industry’s attention with plans for an initial public offering that could raise more than $100 billion, but some investors are wary, pointing to the track records of other government-controlled energy companies. The plan to float as much as 5% of Aramco, the world’s largest oil company, has kicked off a scramble among banks for a role in a deal that could generate $1 billion in fees—the biggest investment-banking deal ever. The kingdom estimates the company has a value of between $2 trillion and $3 trillion. But several publicly listed, state-run oil firms have stumbled, demonstrating the hazards in investing in government-controlled companies. That highlights the dilemma that would-be Aramco investors could face: Would Aramco be accountable to shareholders or to the kingdom that still would own a stake of at least 95%? “Investing into a government-run entity, which acts as kind […]