Saudi Aramco shares soar at maximum 10% on market debut

Aramco’s indicative debut price is seen at 35.2 riyals, 10 per cent above IPO price. (AFP)
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Updated 11 December 2019

Saudi Aramco shares soar at maximum 10% on market debut

  • Company is now world’s largest publicly traded company, bigger than Apple
  • More than top five oil companies combined

RIYADH: Saudi Aramco shares opened at 35.2 riyals ($9.39) on Wednesday at the Kingdom’s stock exchange, 10 percent above their IPO price of 32 riyals, in their first day of trading following a record $26.5 billion initial public offering.
Aramco had earlier priced its IPO at 32 riyals ($8.53) per share, the high end of the target range, surpassing the $25 billion raised by Chinese retail giant Alibaba in its 2014 Wall Street debut.
Aramco’s earlier indicative debut price was seen at 35.2 riyals, 10 per cent above IPO price, raising the company’s valuation to $1.88 trillion, Refintiv data showed.
At that price, Aramco is world’s most valuable listed company. That’s more than the top five oil companies – Exxon Mobil, Total, Royal Dutch Shell, Chevron and BP – combined.
“Today Aramco will become the largest listed company in the world and (Tadawul) among the top ten global financial markets,” Sarah Al-Suhaimi, chairwoman of the Saudi Arabian stock exchange, said during a ceremony marking the oil giant’s first day of trading.
“Aramco today is the largest integrated oil and gas company in the world. Before Saudi Arabia was the only shareholder of the company, now there are 5 million shareholders including citizens, residents and investors,” said Yasir Al-Rumayyan, the managing director and chief executive of the Saudi Public Investment Fund.
“Aramco’s IPO will enhance the company’s governance and strengthen its standards.”
Amin Nasser, the president and CEO of Saudi Aramco, meanwhile thanked the new shareholders for their confidence and trust of the oil company.
The sale of 1.5 percent of the firm, or three billion shares, is the bedrock of Crown Prince Mohammed bin Salman’s ambitious strategy to overhaul the oil-reliant economy.
Riyadh’s Tadawul stock exchange earlier said it will hold an opening auction for Aramco shares for an hour from 9:30 a.m. followed by continuous trading, with price changes limited to plus or minus 10 percent.

The company said Friday it could exercise a “greenshoe” option, selling additional shares to bring the total raised up to $29.4 billion.
The market launch puts the oil behemoth’s value at $1.7 trillion, far ahead of other firms in the trillion-dollar club, including Apple and Microsoft.
Two-thirds of the shares were offered to institutional investors. Saudi government bodies accounted for 13.2 percent of the institutional tranche, investing around $2.3 billion, according to lead IPO manager Samba Capital.
The IPO is a crucial part of Prince Mohammed’s plan to wean the economy away from oil by pumping funds into megaprojects and non-energy industries such as tourism and entertainment.
Watch the video marking Aramco’s opening trading:


World leaders call for courage as virus death toll nears 70,000

Updated 06 April 2020

World leaders call for courage as virus death toll nears 70,000

  • Be strong, Pope Francis says
  • US faces ‘Pearl Harbor moment’

JEDDAH: World leaders urged people on Sunday to show courage and strength in fighting the coronavirus pandemic as the global death toll approached 70,000 from more than 1.25 million cases of infection.

Pope Francis described the outbreak as a tragedy, Queen Elizabeth of the UK offered her personal thanks to frontline health workers, and Americans were warned that they faced the “hardest and the saddest week” of their lives.

Saudi Arabia reported five more deaths from the virus, bringing the total to 34. The number of confirmed cases rose by 206 to 2,385, the highest among Gulf Arab states.

The Foreign Ministry will register requests this week from Saudis abroad who want to return home, with priority given to the elderly, pregnant women and people in countries most affected by the pandemic. Those who return are subject to a 14-day quarantine, and about 11,000 hotel rooms have been set aside for them.

The Health Ministry warned that too many people were ignoring advice to stay at home. “Unfortunately, there is still more than 40 percent mobility in shopping and outdoor activities. This is a very alarming percentage,”ministry spokesman Dr. Mohammed Al-Abd Al-Aly said.

“We are all in this boat together, and those who risk their own lives by going out for no urgent need are risking everybody else’s lives too.”

The six Gulf states have reported 6,757 cases of infection and 54 deaths from the coronavirus. The UAE, where 1,505 people have been infected and 10 have died, will increase its stockpile of strategic goods and waive residency visa fines for the rest of the year, said the prime minister, Sheikh Mohammed bin Rashid Al-Maktoum.

In Rome, on Palm Sunday, a Christian religious festival, Pope Francis celebrated mass by live stream with St.Peter’s Square empty of the usual huge crowds.

“Today, in the tragedy of a pandemic, in the face of the many false securities that have now crumbled, in the face of so many hopes betrayed, in the sense of abandonment that weighs upon our hearts, Jesus says to each one of us: ‘Courage, open your heart to my love’,” he said.

Queen Elizabeth gave a rare special address to the British people, only the fourth in her 68-year reign. She praised frontline health workers and more than 750,000 people who volunteered to help the state-run National Health Service.

“I hope in the years to come everyone will be able to take pride in how they responded to this challenge, and those who come after us will say that the Britons of this generation were as strong as any,” she said.

In the US, as the death toll approached 10,000, US Surgeon General Jerome Adams said: “This is going to be the hardest and the saddest week of most Americans’ lives … our Pearl Harbor moment, our 9/11 moment.”