- Title: Saudi Aramco shares jump 10 percent on stock market debut
- Date: 11th December 2019
- Summary: DHAHRAN, SAUDI ARABIA (FILE - NOVEMBER 3, 2019) (REUTERS) VARIOUS OF ARAMCO COMPANY AND SAUDI FLAGS EXTERIOR OF CONFERENCE CENTRE ARAMCO LOGO AND SIGN READING (Arabic/English): "SAUDI ARAMCO" ARAMCO EXECUTIVES WALKING ON STAGE TO ANNOUNCE START OF INITIAL PUBLIC OFFERING (IPO) OF WORLD'S LARGEST OIL COMPANY ARAMCO CAMERAS FILMING EVENT ARAMCO EXECUTIVES ON STAGE DURING NEWS CONFERENCE RIYADH, SAUDI ARABIA (FILE - NOVEMBER 17, 2019) (REUTERS) VARIOUS OF BILLBOARD ADVERTISING ARAMCO'S IPO EMPLOYEES AND CUSTOMERS IN ALINMA BANK/ ARAMCO IPO ADVERTISEMENT ON SCREEN ARAMCO IPO ADVERTISEMENT ON SCREEN EMPLOYEES IN BANK PEOPLE IN SAUDI BRITISH BANK/ ARAMCO IPO ADVERTISEMENT ON SCREEN RAS TANURA, SAUDI ARABIA (FILE - MAY 21, 2018) (REUTERS) VARIOUS OF SAUDI ARAMCO'S RAS TANURA OIL REFINERY ABQAIQ, SAUDI ARABIA (FILE - OCTOBER 12, 2019) (REUTERS) ARAMCO'S ABQAIQ OIL PRODUCING PLANT UNDER RECONSTRUCTION AFTER IT WAS DAMAGED IN AN AIR STRIKE WORKERS AT OIL FACILITY VARIOUS OF DAMAGED FACILITIES UNDER RECONSTRUCTION
- Embargoed: 25th December 2019 09:47
- Keywords: IPO Saudi Arabia Saudi Aramco World largest listed company ring the bell trade
- Location: DHAHRAN, RIYADH, RAS TANURA AND ABQAIQ, SAUDI ARABIA
- City: DHAHRAN, RIYADH, RAS TANURA AND ABQAIQ, SAUDI ARABIA
- Country: Saudi Arabia
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA002B9J7WP3
- Aspect Ratio: 16:9
- Story Text: Saudi Aramco shares surged the maximum permitted 10% above their initial public offering (IPO) price on their Riyadh stock market debut on Wednesday (December 11), closing in on the $2 trillion valuation long sought by Saudi Crown Prince Mohammed bin Salman.
The shares leapt to 35.2 riyal ($9.39) each, up from the IPO price of 32 riyals and at the daily limit of price moves allowed by the Tadawul exchange.
That gives the state-owned oil giant a market value of about $1.88 trillion, comfortably making it the world's most valuable listed company, although it will have one of the smallest "free floats" of publicly tradeable shares, at just 1.5%.
Saudi Arabian Oil Co (Aramco) raised a record $25.6 billion in its IPO last week, giving it a market value of around $1.7 trillion. The flotation, a major challenge for the Riyadh stock exchange, propels the bourse into the world's top 10 by value of listed companies.
Aramco shares began trading half an hour after the market open as the Saudi bourse allowed extra time for the "opening auction" period when investors place their bids, in anticipation of high levels of activity.
Aramco will have the second biggest weighting on the Tadawul index of 9.7%, according to Al Rajhi Capital. Al Rajhi Bank has the biggest weighting at 14.6% due to its larger free float.
Aramco's debut comes as oil prices are being supported by a Saudi-orchestrated move by OPEC and oil producing allies to commit to some of the industry's deepest output cuts in a decade to try to avert oversupply.
Aramco's listing also comes nearly four years after Prince Mohammed unveiled his plan to sell a portion of the world's most profitable company to raise funds to help diversify the kingdom away from oil.
(Production: Chiara Rodriquez)
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