Saudi Aramco Stocks Scheduled for Trading on Wednesday

DHAHRAN, Saudi Arabia – Saudi Aramco’s stocks are scheduled to start trading on the Saudi Stock Exchange on December 11, Wednesday.

After raising around $25.6 billion on its initial public offering, Saudi Aramco shares became the world’s biggest IPO, beating the previous company with the crown, Alibaba, with its $25 million IPO.

On Wednesday, the shares for the oil company will start trading under the “2222” symbol and will give around 10% price fluctuation limit every day, according to reports on Friday.

According to Tadawul, the opening auction for the stocks of the Saudi Arabian Oil Company will extend for 30 minutes, but this is strictly for the first trading day of the stocks only.

With the extended time for the Saudi Aramco shares, its trading session on Wednesday will start at 9:30 am to end at 10:30 am until the usual 3:00 pm market close.

On its first trading day, the Saudi Aramco will supply three billion stocks, valued at 32 riyals for each share. Given its trading price and the number of shares for trading, the Saudi Aramco shares are expected to reach 96 billion riyals, which would take the crown for the highest value for any stock market debut.

From a statement made by Saudi Aramco on Thursday, the trading deal will value the Saudi Arabian Oil Company at around $1.7 trillion. The company has also made a statement saying that it has allowed an option to the Goldman Sachs Saudi Arabia, its IPO’s stabilizing manager, for an additional 450 million stocks to cover the over-allotments.

If the option will be granted, the additional 450 million shares are expected to be issued any time within the first 30 trading days at the share’s offer price. With the additional shares granted, it would bring the IPO value of the Saudi Aramco to around 110.4 billion riyals.

The 32 riyals per stock value suggest that the original three billion stocks issued by Saudi Aramco will have a weighting average of 9.7% on the Tadawul All-Share index, said an analyst from the Al Rajhi Capital.

Sales of Saudi Aramco shares will help the kingdom raise money to fund its ambitious plans of diversifying its economy without having to rely on oil, as well as to create more jobs and attract more investments.

The proceeds from the Aramco share sales will be transmitted into the sovereign Public Investment Fund, with plans to use it for the kingdom’s ambitious plans such as the futuristic economic free zone valued at $500 billion, the Red Sea tourism project, and Neom.