Saudi Aramco shares spike 10% on trading debut

SINGAPORE (ICIS)–Shares of energy giant Saudi Aramco spiked 10% on its debut on the Saudi stock exchange on Wednesday.

At 10:41 Saudi time (07:41) GMT, the company was trading at Saudi riyal (SR) 35.20, against its initial public offering (IPO) price of SR32.

The price movement hit the daily fluctuation limit set by the Saudi bourse or Tadawul.

Saudi Aramco is the most actively traded stock on Wednesday, with current trading volume at 9.80m.

Saudi Aramco’s company’s initial public offering (IPO) of 3bn shares was priced at Saudi riyal (SR) 32/share, the high end of the price range initially set for the offer amid over subscription by both retail and institutional investors.

Saudi Aramco, which is the world’s biggest exporter of crude oil, has raised $25.6bn from the IPO, the largest on record globally.

The IPO shares represent 1.5% of the company, lower than the initial expectation of up to a 5% listing, with the company’s valuation at $1.7tr coming in lower than the $2tr target of Saudi Crown Prince Mohammed bin Salman.

The company can sell up to 450m more shares within the next 30 days under the 15% greenshoe option for the IPO.

Investment bank Goldman Sachs Saudi Arabia is acting as the stabilizing manager for the IPO.

The IPO was launched less than two months since the 14 September attacks on Saudi Aramco’s facilities that temporarily crippled half its crude production.

($1 = SR3.75)

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