- Saudi Aramco records the maximum allowed 10% hike in share price as it debuts on Wednesday.
- The surge has pushed the company closer to the $2 trillion market valuation target.
- Raising $25.6 billion in its IPO, Saudi Aramco became the most valuable listed company in the world.
- UN investigators found no evidence to prove Iran's involvement in attacks on Aramco's oil facilities.
Sources from the Riyadh stock exchange reported earlier on Wednesday that the Saudi Arabian national petroleum and natural gas company, Saudi Aramco, is recording a blockbuster debut on the stock exchange. Share prices were reported to have hiked by 10% (maximum allowed) as compared to the initial public offering (IPO) price. The sharp increase in the share prices is expected to upgrade the market valuation of the petroleum company to $2 trillion, which was originally desired by the Saudi Crown Prince Mohammed bin Salman ahead of the IPO.
Saudi Aramco’s Stock Is Currently Trading At 35.2 Riyals
The IPO price for Saudi Aramco on the Riyadh stock exchange was previously agreed at 32 riyals per share. As of Wednesday, however, the stock was seen exchanging hands as high as 35.2 riyals that hit the maximum limit for daily price movement permitted by the Tadawul exchange.
Currently at $1.88 trillion, the state-owned petroleum and natural gas giant has earned the reputation of the most valuable company that is publicly available to trade across the globe. On the contrary, however, in terms of free floats, it will remain at the bottom at only 1.5%.
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Compared to Saudi Aramco, the U.S based oil giant, Exxon Mobil, currently has a market cap of only $300 billion while the U.S based tech giant, Apple, has lost the title of the most valuable listed company with a market cap of $1.2 trillion.
Thanks to Crown Prince’s years-long efforts, the oil giant raised $25.6 billion last week in its IPO, the highest ever raised by any firm. Inviting foreign investments, Saudi Aramco contributed the most to diversify the kingdom’s economy.
Iran May NOT Be Behind The September Attacks On Saudi Aramco’s Oil Facilities
In separate news, the UN investigators have recently announced that they are unable to find substantial evidence that Iran was behind the attacks on Saudi Aramco’s oil facilities. The United States and Saudi Arabia had jointly blamed Iran for drone and missile attacks in September. As per Secretary-General, Antonio Guterres of the United Nations, while the team is still collecting additional evidence and analysis is undergoing, the evaluation of the cruise missile and drones’ debris has so far not provided any evidence that the weaponry was of Iranian origin.
Despite the Saudi defense ministry and the U.S Secretary of state reiterating on multiple occasions that the debris of the weapons used in the attack suggests Iranian origin, authorities from Iran have repeatedly refused to take responsibility for the attack.