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Page added on December 11, 2019

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Saudi Aramco shares surge 10% as historic IPO begins trading

Business

Saudi Aramco, the world’s largest initial public offering (IPO), surged past expectations as it debuted on the country’s stock exchange on Wednesday morning.

Shares of the state-owned oil company rose to 35.2 Saudi riyals ($9.38) from 32 riyals in early deals in Riyadh, up 10% and hitting their daily limit. The price gives it a valuation of $1.88 trillion and makes it the largest listed company in the world, comfortably ahead of Microsoft and Apple.

Aramco’s public debut, which listed 1.5% of its shares locally on the Saudi Tadawul, is the biggest on record — topping the $25 billion Alibaba raised when it went public in September 2014.

The oil giant has also surpassed its earlier valuation of $1.7 trillion, announced when share pricing was disclosed last week at the top of the market range. But the $1.88 trillion valuation remains below what the kingdom had initially targeted and relied heavily on local investors after the company canceled international roadshows due to lackluster foreign interest.

VIDEO02:47
Aramco IPO tells you the direction of Saudi’s Vision 2030: Academic

Aramco CEO Amin Nasser told CNBC at the event that the company was pleased with the day’s results.

“We are progressing based on what was decided, which is to (price) Aramco at 32 riyals per share, which was agreed based on full analysis and evaluation,” Nasser said.

“We are happy on the results today. And you have seen the market responds to our results, the company will continue to be the leader globally when it comes to the energy sector and at the same time we are looking at sustained and growing dividends to our investors. At the same time we continue our growth strategy, increasing profitability across cycles.”

The long-awaited IPO of world’s most profitable company forms the centerpiece of Crown Prince Mohammed bin Salman’s Vision 2030 program aimed at transforming the Saudi economy. The crown prince first floated the idea in 2016, stunning market observers by suggesting a head-spinning valuation of $2 trillion. That figure was brought down by financial advisors and banks earlier this year to a range of between $1.5 trillion and $1.7 trillion.

VIDEO00:58
Saudi Aramco CEO on IPO: We are happy with the results today

The launch follows a weeks-long local roadshow around the Middle East that saw Aramco’s local listing many times oversubscribed, according to banks advising the listing.

But regional and market experts have thrown cold water on the celebrations, calling the valuation a “hollow win” and acknowledging that while historic, much of the local investor demand was “manufactured.”

Gulf allies the United Arab Emirates and Kuwait are believed to have made substantial commitments to the Saudi project, with the Kuwait Investment Authority and Abu Dhabi reportedly investing up to $1 billion and $1.5 billion in the public offering, respectively, though they have not commented publicly on the matter.

Samba Capital, one of Aramco’s advisors, said in a statement last week that 10.5% of the offers came from foreign investors, while most were from Saudi funds and companies. Saudi Arabia has also turned to wealthy local families and Saudi billionaires to drum up support for the listing, according to reports.

Investor risks?

Ahead of the listing, Aramco detailed the vast number of risks its oil and gas business faces in a prospectus released in early November.

More obvious risks include the supply, demand and price of crude or how much oil the Saudi government decides to produce, as the country is the largest producer in OPEC.

Security risks remain high on that list — Aramco’s oil production was hit by drone attacks in September, which forced Riyadh to cut output by 50%. It took weeks for the Saudi government to restore capacity, though the recovery was far quicker than markets expected. Other risks include climate change and the company’s dependence on demand from Asia, its prospectus said.



45 Comments on "Saudi Aramco shares surge 10% as historic IPO begins trading"

  1. makati1 on Wed, 11th Dec 2019 4:33 pm 

    Another day of oily bullshit, including Davy and Cloggie clogging up the site with their delusions. ALL that comes out of the oily industry are lies. Gotta keep the “investor’ suckers on the line a while longer.

    The KSA needs money and there will be a lot of fools lined up to throw it at them. I read on another site that the IPO could be worth zero by next year. Hmmm?

    “Fools and their money are soon parted.” I also read that somewhere long ago.

  2. makati1 on Wed, 11th Dec 2019 5:01 pm 

    Another day of watching the US commit suicide by a million self-inflicted cuts. Yawn!

  3. Shortend on Wed, 11th Dec 2019 8:40 pm 

    Hope my pension fund goes all in!

  4. Davy on Thu, 12th Dec 2019 5:02 am 

    “Another day of oily bullshit, including Davy and Cloggie clogging up the site with their delusions.”

    makato, nice to know you are fading away and irrelevant. If we could just get your best friend, juanPee, to go away we could start to rebuild this forum attracting smart people.

  5. rockman on Thu, 12th Dec 2019 10:39 am 

    mak – First Aramco is NOT the oil industry. It is the Saudi govt and as such its dynamic is not related in general to that of the industry.

    I’m still waiting to hear what will be the value of owning Aramco stock. If it pays no dividends then the only way to make a profit will be selling at a higher price the one buys for. And how long will stock price increase as long as no dividends are paid?

    Time will tell.

  6. fwsmj on Thu, 12th Dec 2019 10:51 am 

    rockman on Thu, 12th Dec 2019 10:39 am
    Whoa many drum rolls
    Welcome back supertard and I’m not sorry to drive you away
    Many cheers 2u and happy (((supremetard)))bday

  7. Duncan Idaho on Thu, 12th Dec 2019 10:56 am 

    The 6 times bankrupt Fat Boy is at it again.
    Being Pres make be the perfect gig for him– he can’t go bankrupt:
    “The U.S. budget deficit rose by 2% last month to $209 billion, another step in a journey back toward $1 trillion-a-year budget shortfalls… “November is the second month of the government’s 2020 budget year…

    “The Congressional Budget Office is forecasting that the deficit for 2020 will hit $1 trillion and will stay above $1 trillion for the next decade. The country last ran annual $1 trillion annual deficits from 2009 through 2012 during and after the financial crisis…

    “So far this budget year, the government is running a deficit of $343 billion, up 12% from a year earlier.”

  8. fwsmj on Thu, 12th Dec 2019 10:57 am 

    rockman on Thu, 12th Dec 2019 10:39 am
    Supertard my new hit and run strategy is to buy very low and short even higher since percentage computation is relative in spite of how we’re taught by supertards that simple arithmetic is objective measurement
    Every other time is just a waiting game and if in negative territory will emotionally wear u down

  9. JuanP is stupid on Thu, 12th Dec 2019 10:58 am 

    Hey Rock, fyi, fwsmj is stupid

  10. fwsmj on Thu, 12th Dec 2019 11:03 am 

    Duncan Idaho on Thu, 12th Dec 2019 10:56 am
    Oh ok supertard
    Please put the lib urn on the ground gently and walk away backward slowly
    Deficit spending is not even a campaign issue and the last time I bought a condom using pm was 1999 and I dont score so I never bought anything using precious metal
    You’re not even a disciple of whitey supertard paul so why u even say something like that
    Guess muzzies long legged mack daddy as pastor manning put it didn’t do deficit spending?

  11. fwsmj on Thu, 12th Dec 2019 11:21 am 

    forgot to say thanks to supertard for using low english

  12. Duncan Idaho on Thu, 12th Dec 2019 11:21 am 

    “This should’ve been the biggest story of the day. He stole money from his own charity. He had to pay $2 million in damages. He has to get permission to ever run a charity again. It’s an offense that would end anyone else’s candidacy. But because Trump is SO corrupt…we yawn.”

  13. fwsmj on Thu, 12th Dec 2019 11:23 am 

    Davy on Thu, 12th Dec 2019 5:02 am
    Above is supertard obv.

  14. Davy on Thu, 12th Dec 2019 11:25 am 

    OMG! The ROCK made a special appearance specifically to debate makato? I guess that means makato isn’t so irrelevant after all.

    I’m so jealus

  15. fwsmj on Thu, 12th Dec 2019 11:34 am 

    Davy on Thu, 12th Dec 2019 11:25 am
    supertard makk is just a lil scrawning supertard. please be kind to him
    thanks supertard for using low english

  16. Davy on Thu, 12th Dec 2019 11:52 am 

    supertard makato is 6 foot 3. 212 pounds. And he pumps iron fwsmj. Three times a day. And he was in the US military. The most elite fighting force in the hole wide world.

    makato is no slouch

  17. JuanP on Thu, 12th Dec 2019 11:56 am 

    “supertard makato is 6 foot 3. 212 pounds. And he pumps iron fwsmj. Three times a day. And he was in the US military. The most elite fighting force in the hole wide world. makato is no slouch”

    actually he is a short skinny guy that I imagine to be wrinkled and pale.

  18. JuanP on Thu, 12th Dec 2019 11:57 am 

    Im short to and brown like most Central Americans

  19. Davy on Thu, 12th Dec 2019 12:00 pm 

    Nobody here cares what you think JuanP.

    stupid

  20. JuanP is stupid on Thu, 12th Dec 2019 12:03 pm 

    We definitely don’t care about you juanPee pee. You have nothing to offer intelligent people not even a laugh. fwsmj is more stupid than you.

    this is stupid
    Davy said Nobody here cares what you think JuanP. stupid

    Davy said “Come on, admit it that you are REAL GREEN with en…

  21. JuanP on Thu, 12th Dec 2019 12:08 pm 

    Tucker Carlson: IG report is a big, big problem for CNN, others – They are exposed as liars and know-nothings

    “Thanks to the Department of Justice IG report — the one released on Monday — we now know for certain what was, for those paying attention, fairly obvious for a long time — in fact, from the beginning. We now know the Steele dossier played a central role in the genesis of the beginning of the Russia hoax. The dossier was used to justify extensive spying on an innocent American citizen; that would be former naval officer and Annapolis graduate, Carter Page. The top two leaders at the FBI were closely involved in the decision to do this. Other powerful people, including a former director of the CIA, knew it was happening and then lied to cover it up later. All of that was confirmed Monday by the IG’s report. The report was a disaster for the credibility of our bureaucratic class in Washington. But it’s also a big, big problem for the American news media. They were exposed as liars and know-nothings as well.”

  22. JuanP on Thu, 12th Dec 2019 12:13 pm 

    Rep. Rashida Tlaib Mislabeled Jersey City Shooting As An Act Of White Supremacy
    Rep. Rashida Tlaib (D-MI) tweeted the attack that left six people dead at a Kosher market in Jersey City, New Jersey Tuesday was an act of white supremacy. Officials confirmed Wednesday, however, the attackers were linked to a black supremacist group the Black Hebrew Israelites, a law enforcement official told The New York Times. Notably, the same group was responsible for confronting a group of high school boys from Covington Catholic visiting the Lincoln Memorial in January. In a later statement released by student Nick Sandmann, the group called the students ‘racists,’ ‘bigots,’ ‘white crackers,’ ‘f—-ts,’ and ‘incest kids.’

  23. full woke supremacist muzzies jerk maximum I know some wrong when a pretty little white girl ran to a black man arms dead giveaway deeeeeeeeeereeeeeeeeeeeeed giveaway on Thu, 12th Dec 2019 12:16 pm 

    rockman on Thu, 12th Dec 2019 10:39 am
    Typo I mean ti say I’m sry drive u away
    Wb supertard

  24. Davy on Thu, 12th Dec 2019 12:17 pm 

    Nobody cares what you think ‘JuanP’.

    stupid

  25. makati1 on Thu, 12th Dec 2019 4:53 pm 

    Will the REAL Rockman please stand up! I think he disappeared long ago and is still gone.

    BTW: Aramco is only going to be worth anything until the next missiles take out more of the Saudi dreams and the big war starts there. It is only a matter of time as Nutenyahoo is still trying to get it started and the US will back them.

    When none of the Saudi oily stuff can get out of the Gulf and most of their oily infrastructure is gone, then what? All they have left to sell will be sand.

    Only greedy fools are investing in a losing adventure. The Saudis are desperate for money and the stupid, greedy, fools will throw it at them. They had to force their own people to invest so it has any value. It never made it to the real stock exchange because of lack of interest. More lies from the oily industry. Yawn!

  26. makati1 on Thu, 12th Dec 2019 5:05 pm 

    Duncan, the US has been spending well over a trillion more than it takes in, every year since, at least, 2008. None of the numbers coming out of the beltway are anywhere near real or they would show that the US has been in a depression since then, or earlier. It is only getting worse. Every area of debt is increasing exponentially.

    Soon the whole thing is going to blow up and end any dreams of a comfortable future for Amerikans. ‘Retirement’ will mean you are dead, not living comfortable in Florida. Sad, but they asked for it with their greed and sloth.

    I fully expect ALL the social safety nets, including Social Security, to end before 2030, or be so downsized by inflation to be almost worthless. As for other “retirement plans…LOL…they are ALL on the cliff edge of bankruptcy and will vanish over it with the coming market casino crash.

    When? Next year? The year after? Before 2025 surely. Are YOU prepared? I am.

  27. Richard Guunette on Thu, 12th Dec 2019 5:05 pm 

    will the real makati1 please fade away like old people who can’t think properly should

  28. Richard Guunette on Thu, 12th Dec 2019 5:06 pm 

    China has the worst aggregate debt level in the world

  29. More Davy Stupidity on Thu, 12th Dec 2019 5:16 pm 

    Richard Guunette on Thu, 12th Dec 2019 5:05 pm

    Richard Guunette on Thu, 12th Dec 2019 5:06 pm

  30. Richard Guunette on Thu, 12th Dec 2019 6:45 pm 

    Will the REAL A-hole Davy dumbass please fade away like old dumbasses who cant think properly should.

  31. Richard Guenette on Thu, 12th Dec 2019 6:52 pm 

    Will the stupid JuanPee fade away so this forum can get back to normal

  32. REAL Green on Thu, 12th Dec 2019 7:00 pm 

    I think we might of sharted in our depends agin Davy. And we’re out of asswipe.

  33. Richard Guenette on Thu, 12th Dec 2019 7:06 pm 

    JuanP is a troll and everyone here hates him for what he has done to our place. No wonder his family kicked him out of the house.

  34. makati1 on Fri, 13th Dec 2019 3:52 pm 

    Without all the Davy puppets, the PO site manager would not be making any $$$$ so he is tolerated while he drives the others away. It only takes one rotten apple (asshole) to ruin a good barrel. Soon he will be limited to talking to himself thru his puppets. Insanity!

  35. full woke supremacist muzzies jerk on Fri, 13th Dec 2019 5:23 pm 

    makati1 on Fri, 13th Dec 2019 3:52 pm
    supertard, please be respectful to supertard and uppertard

  36. JuanP is stupid on Fri, 13th Dec 2019 5:54 pm 

    this is stupid:

    full woke supremacist muzzies jerk said makati1 on Fri, 13th Dec 2019 3:52 pm supertard, p…

  37. makato is a hypocrite and whiner on Fri, 13th Dec 2019 5:56 pm 

    “Without all the Davy puppets, the PO site manager would not be making any $$$$ so he is tolerated while he drives the others away. It only takes one rotten apple (asshole) to ruin a good barrel. Soon he will be limited to talking to himself thru his puppets. Insanity!”

    Makato, dumbfuck, whine to your bud JuanPee that you love and adore. This could stop immediately but he loves being a mindless troll and you love him. What a stupid fuck to be whining like you do.

  38. makati1 on Fri, 13th Dec 2019 6:12 pm 

    You keep proving my assertion, Davy! WOOF! LMAO!

  39. Davy on Fri, 13th Dec 2019 6:42 pm 

    “You keep proving my assertion, Davy! WOOF! LMAO!”

    makato, you are turning into a JuanPee. Review your comments tonight to see how mindless you have become. There is nothing but whining and crying.

  40. makati1 on Fri, 13th Dec 2019 6:54 pm 

    Davy, that beats the goatshit you spew all over the site 24/7/365. I point out facts about the real world you don’t like so you revert to the school yard bully and try to put me down. Not going to succeed. Better men have tried but failed also.

    Your Amerikan, banana republic, police state is going down. The sooner the better. Amerikan corruption is now so obvious, even a blind man can see it. it is the laughing stock of the world.

    But, if supporting the plundering, baby killing US government is your thing, go for it. Just keep in mind that blow-back is a bitch.

  41. Davy on Fri, 13th Dec 2019 7:03 pm 

    “Davy, that beats the goatshit you spew all over the site 24/7/365.”
    I present real news makato, you rarely do anymore. In fact, you are rarely here anymore.

    “I point out facts about the real world you don’t like so you revert to the school yard bully and try to put me down.”
    Review your past 15 comments stupid and tell me who started messing with who. You are the one putting me down but doing a very poor job of it.

    “Not going to succeed. Better men have tried but failed also.”
    I don’t have to put you down, stupid, you do too good of a job of that on your own.

  42. makati1 on Fri, 13th Dec 2019 7:59 pm 

    Davy, I am obviously hitting a nerve, but who cares? Not I. I’m off to the wet market to buy some fresh Blue Marlin steaks from a fish caught last night. It is a balmy 82F this sunny Saturday morning and there is a nice breeze blowing. Later! ^_^

  43. Davy on Fri, 13th Dec 2019 8:55 pm 

    You are kidding yourself makato because that is what delusionals do they live lies. Who cares what you do. Happiness is not about trying to make people jealous.

  44. Davy on Fri, 13th Dec 2019 10:21 pm 

    And obviously I wouldn’t be accusing you of making people feel jealous makato, if i wasn’t feeling jealous myself.

    All of us that have at least one or two brain cells left, have no troubles seeing that.

  45. ull woke supremacist muzzies jerk i knew some wrong when a pretty little white girl ran to a black man arms dead giveaway deeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeed giveaway on Sun, 15th Dec 2019 9:15 pm 

    now supertard fitzgerald is identifying new disease adult onset muzism AOI 🙂
    I have discovered other releated disese
    ginger mediate muzism GMI
    prison mediated muzism PMI

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