DHARAHN, Saudi Arabia – Today is the trading debut for the Saudi Aramco shares, and it’s proving to be more than optimistic, following its greatest IPO recorded in the market’s history.
The status of Saudi Aramco as the most valuable company was further solidified during its trading debut on Wednesday, with its recorded 10% increase during the market opening in the Riyadh Stock Market. With the day’s gains of Saudi Aramco shares, it’s looking towards reaching the $2 trillion valuations that the Saudi Crown Prince Mohammed bin Salman has long sought.
The initial public offering price of the Saudi Aramco shares was at 32 riyals previously, but in today’s trading open, shares were up by 10%. Currently, Saudi Aramco shares are trading at around 35.2 riyals per share.
Before recording its gains for the day, the Saudi Arabian Oil Company had already made a massive mark in the market history when it raised a record-high for its IPO last week, which was around $25.6 billion, dethroning the $25 billion of the previous highest record which was held by Alibaba. The massive IPO gave Saudi Aramco a $1.7 trillion market value.
With its massive IPO and the 10% gains recorded for its stock exchange debut, Saudi Aramco has become the largest listed company in the entire world. However, the company will have one of the tiniest free floats of shares tradeable in public, which is just at 1.5%.
The latest valuation of $1.88 trillion for Saudi Aramco shares after today’s gains makes it worth more than five of the largest oil companies, which are BP, Royal Dutch Shell, Total, Chevron, and ExxonMobil, combined.
The Saudi Aramco shares are currently on the high ground, despite getting mostly lukewarm interest from investors and market players abroad. Most of the share sales for the Saudi Aramco were large because of major backing from both domestic and regional investors.
Most of the advance for the Saudi Arabian Oil Company, which is trading under the 2222 ticker, followed after multiple reports that said that the government in Saudi Arabia had pushed domestic investors to put their resources into the company.
According to reports, during the start of the trading session in Riyadh, state investment funds were bucked up to purchase Aramco stocks.
Investment index providers owned by the London Stock Exchange, FTSE Russell, S&P Dow Jones, and MSCI have all stated their plans to include Aramco stock in their indexes very soon.