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Saudi Aramco share posts first drop since listing

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FILE PHOTO: A view shows branded oil tanks at Saudi Aramco oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov/File Photo

Saudi Aramco shares posted the first drop on Tuesday after five days of listing on the Saudi Stock Exchange Tadawul, but its valuation stayed above the sensitive $2 trillion mark.

The energy giant was listed on Tadawul on December 11 following the world’s largest initial public offering and continued to rise since then, before edging down slightly at close on Tuesday.

Aramco shares closed Tuesday trading at 37.75 riyals ($10), down 0.25 riyals or 0.66 percent on the day, but the stock remains 18 percent higher than the IPO price of 32 riyals.

The market value of the world’s largest listed firm still remained slightly above $2 trillion, a figure de facto ruler Crown Prince Mohammed bin Salman had sought when he first floated the sale almost four years ago.

Saudi authorities sold 1.5 percent of Aramco in the IPO, raising $25.6 billion and surpassing China’s Alibaba stock sale as the largest in the world.

Aramco shares rose the maximum allowed 10 percent on the debut trading day and elevated its valuation briefly above the $2 trillion mark the day after.

It consolidated its valuation above $2 trillion in the following days.

Aramco has guaranteed that it will distribute dividends of at least $75 billion every year until 2024.

The company also said on Tuesday that it has completed the acquisition of 17 percent of South Korean Hyundai Oilbank for nearly $1.2 billion.

Hyundai Oilbank is a private oil refining company with a processing capacity of 650,000 barrels per day.


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