Saudi Aramco listing pushes Saudi Stock Exchange to top 10 position

A Saudi broker monitors the stock market at the Arab National Bank in the Saudi capital Riyadh. (File photo: AFP)

Saudi Aramco’s listing has moved the Saudi Stock Exchange (Tadawul) up in global stock exchange rankings to the top 10, the exchange’s head Sarah al-Suhaimi said.

Aramco’s shares soared to 35.2 riyals ($9.39) per share within minutes of trading, reaching the 10 percent fluctuation limit on the stock. With this share price, the oil giant currently has a valuation of $1.88 trillion, dwarfing any other company in the world.

The Tadawul is now the world’s ninth-biggest stock market, reported Bloomberg, overtaking India, ad coming close to the German and Canadian exchanges.

Aramco’s listing is a cornerstone of Saudi Arabia’s Vision 2030 plan, which aims to wean the Kingdom off its reliance on oil to diversify the economy. The proceeds from the listing will go towards these diversification initiatives and could be invested in sectors such as logistics, mining, or developing the manufacturing and industrial economy.

The blockbuster IPO raised a record-breaking $25.6 billion, which could rise to $29.4 billion should the oil giant exercise an option to sell 15 percent more stock, a senior banker said on Monday.
Wassim al-Khatib, Head of Investment Banking at National Commercial Bank, said the so-called greenshoe option – a provision that grants the underwriter the right to sell more shares – could be implemented.

Investors have long been attracted to Aramco for its profitability and for having the lowest average cost of crude oil production in the world, at around $3 a barrel. It also sits on one of the biggest oil reserves in the world, about four times larger than those of its next biggest competitor ExxonMobil.

SHOW MORE
Last Update: Wednesday, 20 May 2020 KSA 09:53 - GMT 06:53
Top