Aramco shares rocket on debut after record IPO

Published December 12, 2019
The stock sale is the cornerstone of Saudi Prince Mohammed bin Salman's ambitious strategy to overhaul the oil-reliant economy by raising funds to pour into megaprojects and non-energy industries such as tourism and entertainment. — Reuters/FIle
The stock sale is the cornerstone of Saudi Prince Mohammed bin Salman's ambitious strategy to overhaul the oil-reliant economy by raising funds to pour into megaprojects and non-energy industries such as tourism and entertainment. — Reuters/FIle

RIYADH: Saudi Aramco’s shares soared on their debut on the domestic stock exchange on Wednesday, becoming the world’s biggest listed company worth $1.88 trillion after a record-breaking IPO.

Aramco had priced the initial public offering at 32 riyals ($8.53) per share, raising $25.6 billion and narrowly eclipsing Alibaba’s IPO of 2014 to become the world’s largest.

Aramco shares climbed the maximum permitted 10 per cent to 35.2 riyals just seconds after the opening bell on Riyadh’s Tadawul exchange and stayed there until trading stopped.

That gives Aramco a market valuation of $1.88tr, making it the world’s most valuable company as it closes in on the $2tr price tag coveted by de facto ruler Crown Prince Mohammed bin Salman.

“Today is a day of immense pride for Aramco,” company chief executive Amin Nasser said at a glitzy launch ceremony.

“Today we make history as Saudi Aramco marks the beginning of an important new chapter in our company’s journey of prosperity,” he added.

The stock sale is the cornerstone of Prince Mohammed’s ambitious strategy to overhaul the oil-reliant economy by raising funds to pour into megaprojects and non-energy industries such as tourism and entertainment.

Wealthy Saudi families are reportedly under pressure from the government to invest in the Aramco stock, with nationalists calling it a patriotic duty.

Published in Dawn, December 12th, 2019

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Impending slaughter
Updated 07 May, 2024

Impending slaughter

Seven months into the slaughter, there are no signs of hope.
Wheat investigation
07 May, 2024

Wheat investigation

THE Shehbaz Sharif government is in a sort of Catch-22 situation regarding the alleged wheat import scandal. It is...
Naila’s feat
07 May, 2024

Naila’s feat

IN an inspirational message from the base camp of Nepal’s Mount Makalu, Pakistani mountaineer Naila Kiani stressed...
Plugging the gap
06 May, 2024

Plugging the gap

IN Pakistan, bias begins at birth for the girl child as discriminatory norms, orthodox attitudes and poverty impede...
Terrains of dread
Updated 06 May, 2024

Terrains of dread

Restored faith in the police is unachievable without political commitment and interprovincial support.
Appointment rules
Updated 06 May, 2024

Appointment rules

If the judiciary had the power to self-regulate, it ought to have exercised it instead of involving the legislature.