Petroleum company Saudi Aramco’s stock market was well received. It has become one of the most expensive listed companies in the world by market capitalization.
Riyadh: Petroleum company Saudi Aramco’s stock was welcomed in the market. After a record $ 25.6 billion initial public offering (IPO) of the company, its stock was up 10 percent at the start of the first day’s trading on the local stock market on Wednesday. This increased the company’s market value to $ 1,880 billion in terms of share value. It has become one of the most expensive listed companies in the world by market capitalization.
Aramco started trading at Tadavul stock market in Riyadh at 10:30 am. Aramco had set an IPO rate of 32 riyals i.e. $ 8.53 per share and raised $ 25.6 billion by selling shares in the primary market. This IPO surpassed the record of $ 25 billion IPO by Alibaba in 2014.
Saudi Arabia’s Crown Prince Mohammed bin Salman’s ambitious plan is to revive the economy from dependence on crude oil. Under this, Aramco was offered to sell a 1.5 percent stake, or three billion shares.
The Tadavul stock exchange in Riyadh said the company’s stock jumped 10 per cent to 35.2 rial, or $ 9.39, in the initial auction of Aramco shares for an hour after 9:30 am local time. A maximum limit of 10 per cent was imposed for fluctuations in the company’s stock.
The company said on Friday that it could sell the additional shares to raise the total capital raised from the IPO to $ 29.4 billion. After the IPO, Aramco has become the world’s largest company with a market capitalization of $ 1,700 billion. As individual investors, only the citizens of Saudi Arabia can buy Aramco shares.