Saudi Aramco price seen at 10 pct limit, 35.2 riyals, before regular hours

Reuters

Saudi Aramco's indicative price is seen at 35.2 riyals ($9.39) per share in before-hours trading, up 10 percent from the IPO price of 32 riyals ($8.5) per share, Reuters reported, citing Refinitiv data.

A share price of $9.39 per share would give Aramco a valuation of $1.88 trillion.

Saudi Aramco is set to begin trading on the Saudi Stock Exchange (Tadawul) on Wednesday under the symbol 2222 as part of the final stage of its blockbuster initial public offering (IPO).

Trading on the Tadawul will allow those that bought shares in Aramco during the IPO process to sell, and allow others to buy.

The stock is subject to a 10 percent fluctuation limit, meaning that it could trade as high as 35.2 riyals ($9.39) and can go no lower than 28.8 riyals ($7.68).

During the first day of trading, the opening auction for Aramco will be extended by 30 minutes, the Tadawul said in a statement. The auction begins at 9:30 a.m. and ends 10:30 am local time.

FAQ's

Saudi Aramco is the Kingdom’s state-owned energy company and the world’s biggest oil producer. In November, the company reported a profit of $68 billion for the first nine months of 2019 – making it the most profitable company in the world.
An initial public offering (IPO) is the process by which a company sells a portion of its ownership (shares) to public investors to raise funds (also known as capital). The company sells its shares by listing them on a public stock exchange, where investors can purchase them.
"I am honored to announce that Saudi Aramco will become a listed company on the Saudi Stock Exchange,” Chairman Yassir al-Rumayyan said in early November. The exact percentage of the company and the possibility of another listing on a foreign exchange are both still unknown details, however.
Senior Saudi Arabian authorities have targeted a $2 trillion valuation. At this valuation, a 5 percent listing would raise $100 billion in funds – dwarfing any other IPO in history. However, some analysts and investment banks have predicted a range closer to between $1.2 and $1.5 trillion.
The IPO prospectus is expected to be released on November 10, with pricing expected November 17. Meanwhile, the float is expected to take place on December 4, followed by trading on December 11.
The IPO is part of Saudi Arabia’s overall strategy to transition into a post-hydrocarbon age. The income generated would be funneled into the Public Investment Fund (PIF), the Kingdom’s sovereign wealth fund (SWF). Saudi Arabia’s Vision 2030 plans to transform the PIF into a giant investment vehicle to help the country diversify its economy and reduce its reliance on oil revenues.
Saudi Vision 2030 is the Kingdom’s ambitious plan to diversify its economy by reducing dependence on oil and developing non-oil sectors ranging from healthcare to mining. The IPO is seen as a cornerstone of Vision 2030, boosting the PIF as the long-term investment vehicle for the Kingdom.

Saudi Arabia’s Crown Prince Mohammed bin Salman

- The Crown Prince is the architect of Vision 2030 and originally announced plans to list shares of Saudi Aramco in 2016.

Prince Abdulaziz bin Salman, Saudi Arabia’s Energy Minister

- Prince Abdulaziz assumed the role of energy minister in September of this year, replacing Khalid al-Falih.

Yasir al-Rumayyan, Chairman, Aramco

- Al-Rumayyan became chairman of Aramco’s board in September. He is best known as governor of the PIF, a role he continues to hold.

Amin Nasser, President and CEO, Aramco

- Nasser has been with Aramco for more than three decades and has held numerous leadership positions.