SAUDI ARABIA

Saudi Aramco surges on second day of listing

December 12, 2019
Saudi Aramco and Tadawul top officials are seen during the first day of oil giant's trading on Wednesday in Riyadh.
Saudi Aramco and Tadawul top officials are seen during the first day of oil giant's trading on Wednesday in Riyadh.

RIYADH — Saudi Aramco's market value soared above $2 trillion on Thursday as its share price surged again on its second day of trading.

Aramco shares jumped another 9.7 percent to SR38.60 riyals ($10.3) on Thursday morning, following a 10-percent rise the previous day.

Jump in share price boosted the company's valuation to $2.06 trillion and pushed the Saudi Stock Exchange's (Tadawul) capitalization up to $2.56 trillion, making it the seventh largest bourse in the world ahead of the Canadian, German and Indian markets.

The company began trading on the Tadawul on Wednesday following its record-breaking initial public offering (IPO) which raised $25.6 billion. Aramco’s share price came to market fixed at SR32 ($8.53), but rose immediately after listing to SR35.2 ($9.39), the maximum gain permitted by a 10 percent fluctuation limit on the stock. It stayed at SR35.2 throughout the day.

The company’s new valuation hits the $2 trillion target set by authorities, following Aramco’s IPO in which the company was priced at $1.7 trillion. The new valuation is in line with Saudi Arabian Crown Prince Muhammad Bin Salman’s original 2016 announcement of a partial sale of Aramco when he stated that the company’s true value is $2 trillion, according to a report in English Al-Arabiya. — Agencies


December 12, 2019
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