Saudi Aramco’s price surge by 10 percent in trading debut
December 12, 2019 | Investopaper
The world’s most profitable company, Saudi Aramco’s shares rallied in the trading debut as the price of the shares surged by 10 percent above the IPO price. The shares are listed in the Riyadh stock market.
The shares of the company moved to 35.2 riyals while the IPO price was 32 riyals i.e. a gain of 10 percent. The 10 percent is the daily limit of price moves allowed in the Tadawul exchange. The market valuation of the company now stands at $1.88 trillion after the initial surge in the stock price. It is the world’s most valuable listed company in the world.
The IPO of the world’s profitable company, Saudi Aramco raised $25.6 billion beating the previous record of Alibaba. The latter company raised $25 billion by going public in 2014. The IPO price was set at $8.53 per share. Due to the huge offerings, the company toppled the previous records of IPO sales and this will give the company a valuation of $1.74 trillion too. The valuation was still below what the Saudi Kingdom was targeting. It missed the margin of 2 trillion initially valued by the Crown Prince Mohammed bin Salman. He has the vision to transform the economy of the country within 2030.
