Saudi Aramco raises IPO to record $29.4 billion through greenshoe option

Investors monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) following the debut of Saudi Aramco’s initial public offering (IPO) on the Riyadh’s stock market, in Riyadh, Saudi Arabia, December 11, 2019. State-owned oil company Saudi Aramco said on Sunday it has exercised its “greenshoe option” to sell an additional 450 million shares, raising the size of its initial public offering (IPO) to a record $29.4 billion. Aramco initially raised a then-record $25.6 billi


Investors monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) following the debut of Saudi Aramco’s initial public offering (IPO) on the Riyadh’s stock market, in Riyadh, Saudi Arabia, December 11, 2019.
State-owned oil company Saudi Aramco said on Sunday it has exercised its “greenshoe option” to sell an additional 450 million shares, raising the size of its initial public offering (IPO) to a record $29.4 billion.
Aramco initially raised a then-record $25.6 billi
Saudi Aramco raises IPO to record $29.4 billion through greenshoe option Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2020-01-12
Keywords: news, cnbc, companies, shares, record, greenshoe, aramco, 294, additional, raises, overallotment, sell, public, saudi, billion, ipo, stock, option, initial


Saudi Aramco raises IPO to record $29.4 billion through greenshoe option

Investors monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) following the debut of Saudi Aramco’s initial public offering (IPO) on the Riyadh’s stock market, in Riyadh, Saudi Arabia, December 11, 2019.

State-owned oil company Saudi Aramco said on Sunday it has exercised its “greenshoe option” to sell an additional 450 million shares, raising the size of its initial public offering (IPO) to a record $29.4 billion.

Aramco initially raised a then-record $25.6 billion in its IPO in December by selling 3 billion shares at 32 riyals ($8.53) but indicated it may sell additional shares through the over-allotment of shares.

A greenshoe option, or over-allotment, allows companies to issue more shares in an IPO when there is greater demand from participants during the initial offering.

Investors were allocated the additional shares for the option during the book-building process, Aramco said.

Aramco said “no additional shares are being offered into the market today and the stabilizing manager will not hold any shares in the company as a result of exercise of the over-allotment option.”


Company: cnbc, Activity: cnbc, Date: 2020-01-12
Keywords: news, cnbc, companies, shares, record, greenshoe, aramco, 294, additional, raises, overallotment, sell, public, saudi, billion, ipo, stock, option, initial


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Saudi Aramco and Alibaba made for a great 2019 in IPO market despite Uber, Lyft busts

Aramco’s market cap rose to $2 trillion on its second day of trading on the Saudi Arabian stock exchange, Tadawul. With shares above 35 in Saudi Arabian riyals as of Friday, the company’s market cap was over 7 trillion riyals (US $1.87 trillion). Shares have shed nearly 33% since the IPO, closing just above the $30 level on Friday at a $51.5 billion market cap. As of Friday, XP shares are up nearly 12% since the IPO at $38.49, a market cap of about $21.2 billion. With the stock at €32.65 a share


Aramco’s market cap rose to $2 trillion on its second day of trading on the Saudi Arabian stock exchange, Tadawul.
With shares above 35 in Saudi Arabian riyals as of Friday, the company’s market cap was over 7 trillion riyals (US $1.87 trillion).
Shares have shed nearly 33% since the IPO, closing just above the $30 level on Friday at a $51.5 billion market cap.
As of Friday, XP shares are up nearly 12% since the IPO at $38.49, a market cap of about $21.2 billion.
With the stock at €32.65 a share
Saudi Aramco and Alibaba made for a great 2019 in IPO market despite Uber, Lyft busts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-29  Authors: lizzy gurdus
Keywords: news, cnbc, companies, despite, alibaba, stock, lyft, cap, saudi, uber, ipo, aramco, busts, great, trading, billion, market, public, hong, day, shares


Saudi Aramco and Alibaba made for a great 2019 in IPO market despite Uber, Lyft busts

It’s been a big year for public debuts. Despite Uber and Lyft’s high-profile busts, 2019 has been a banner year for initial public offerings around the world, with U.S. IPOs outperforming the S&P 500 year to date and Saudi Aramco making history with its $2 trillion premier, the biggest on record. Overall, some 250 companies — new and old, domestic and multinational — filed to go public this year, a phenomenon some likened to the dotcom bubble of the late 1990s. Century-old Levi Strauss and newcomers including Pinterest and Beyond Meat offered their shares to individual investors, with annual IPOs reaching a multi-decade high. Here are the 10 largest IPOs that hit major public markets around the world in 2019, according to FactSet.

1. Saudi Aramco IPO: Tadawul listing

Saudi Aramco’s IPO priced on Dec. 5 at the top end of its range, a value of $1.7 trillion. The stock’s first day of trading instantly made the energy giant, known officially as the Saudi Arabian Oil Co., the largest public company in the world. Aramco’s market cap rose to $2 trillion on its second day of trading on the Saudi Arabian stock exchange, Tadawul. That value represented an enormous premium to the world’s next-largest public companies, Apple (US $1.26 trillion) and Microsoft (US $1.20 trillion). With shares above 35 in Saudi Arabian riyals as of Friday, the company’s market cap was over 7 trillion riyals (US $1.87 trillion). The stock is up less than half of 1% since the IPO.

2. Alibaba: Hong Kong listing

Chinese e-commerce giant Alibaba holds the title for 2019’s second-largest IPO for its Hong Kong premiere. Priced at roughly $12.9 billion on Nov. 19, Alibaba ended up closing its order books earlier than anticipated after outsized demand drove its valuation to $13.8 billion. At the time of its debut, Alibaba’s Hong Kong IPO was the world’s largest. The company was credited for breathing life into a region wrought by pro-democracy protests that slowed local business activity. Hong-Kong-listed shares of Alibaba surged nearly 10% on their second day of trading. As of Friday, the stock was near 213 a share in Hong Kong dollars, boasting a market cap of more than 4.5 trillion HKD (US $577.9 billion). The stock is up nearly 13.5% since the IPO.

3. Uber IPO: NYSE listing

Uber CEO Dara Khosrowshahi arrives at the New York Stock Exchange as his company makes its initial public offering, Friday, May 10, 2019. Richard Drew | AP

Perhaps one of the year’s most controversial IPOs was that of ride-hailing giant Uber Technologies. The largest U.S.-listed IPO of the year, Uber priced on May 9 at a valuation between $75.5 billion and $82.4 billion, towards the low end of its range and well below the $120 billion price tag it reportedly sought for the listing. Uber’s first day of trading on the New York Stock Exchange revealed Wall Street’s lukewarm sentiments about the company, with shares falling nearly 8%. Lyft, which beat Uber to market by going public in March, has also struggled to garner enthusiasm among investors. Uber’s stock ended its first day on the public market with a valuation of $69.7 billion. Shares have shed nearly 33% since the IPO, closing just above the $30 level on Friday at a $51.5 billion market cap.

4. Budweiser: Hong Kong listing

Anheuser-Busch InBev’s Budweiser IPO was Hong Kong’s other 2019 blockbuster. Priced at a $5 billion valuation on Sep. 23 — towards the low end of its expected range — the debut marked AB InBev’s second pass at listing Budweiser’s Asia-Pacific business in Hong Kong this year. The initial attempt valued the company at $9.8 billion. Budweiser shares rose about 4% on their first day of trading and spoke to the appetites of Asian investors, which were widely expected to be subdued by the ongoing protests in Hong Kong. The Hong-Kong-listed stock closed at 27.50 HKD on Friday, implying a market cap of over 364 billion HKD (US $46.7 billion). Shares are down about 2.5% since the IPO.

5. Postal Savings Bank of China: Shanghai listing

The Postal Savings Bank of China, which runs the country’s biggest network of retail banking branches, went public on its second Asian exchange this year with an IPO in Shanghai. Its 2016 Hong Kong IPO priced the company at around 7.4 billion in Hong Kong dollars, well above the 4.67 billion price tag in Chinese yuan PSBC began trading with in Shanghai this year. The Hong Kong debut saw PSBC’s valuation climb to over 8 billion in HKD, but drew criticism for being propped up by a handful of “cornerstone investors,” or institutional buyers with deep pockets, who were responsible for some 6 billion of the initial float. This bank operator’s 2019 Shanghai debut was delayed and more subdued, raising only about $4 billion. Shares closed up by just 2% on day one of trading as investors balked at the offering, which some took as IPO fatigue in the Chinese market. As of Friday, the Shanghai stock was trading at ¥5.74 a share at a market cap of roughly ¥728.6 billion (US $104.1 billion). The Shanghai-listed shares have climbed over 2% since the IPO.

6. Shenzhen Transsion Holdings: Shanghai listing

Under-the-radar mobile device maker Shenzhen Transsion Holdings holds the title of 2019’s sixth-biggest offering on a major market. Virtually unknown outside of Africa, where it boasts nearly 50% market share, the company made waves when it priced its Shanghai debut at nearly 42.8 times trailing earnings, more than double the multiple assigned to shares of Apple. Shenzhen gained even more traction on its first day of trading in late September, which pushed the stock’s market cap to nearly $4 billion. Shares are down over 24.5% from the IPO date as of Friday, at ¥43.63 a share and a market cap of nearly ¥35 billion (US $5 billion).

7. Avantor IPO: NYSE listing

Avantor Inc.’s U.S. listing came in seventh for 2019’s biggest IPOs. A chemical manufacturer supplying the life sciences industry, Avantor shares hit the public market in May at a $2.9 billion valuation, towards the low end of its predetermined range. Owned by private equity firm New Mountain Capital, which purchased Avantor’s business from biopharma supplier Covidien in 2010, the debut managed to raise over $3.3 billion in its first day of trading. Avantor’s market cap now sits at $10.4 billion as of Friday, with shares up over 30% since the IPO at $18.21.

8. Lyft IPO: Nasdaq listing

Lyft was the first in a wave of high-profile tech companies to go public in 2019, beating even first-mover Uber to market with its March IPO. Priced at the top of its range at over $20 billion, the rival ride-hailing company — which said it accounted for 39% of U.S. market share by the end of 2018 — debuted to huge fanfare, with shares popping as much as 23% on their first day of trading. Lyft’s market cap climbed to $22.2 billion at the end of day one on Wall Street, but the excitement didn’t last long. Its second day of trading saw Lyft fall below its IPO price, creating a dark cloud around the stock that it has struggled to shake since. On Friday, Lyft shares closed at $45.84, down more than 36% from their IPO price and indicating a market cap of $13.6 billion.

9. XP Inc. IPO: Nasdaq listing

Financial services provider XP Inc. hit the Nasdaq in early December in the largest IPO of a Brazilian company this year. Valued at $14.9 billion thanks to hefty private-sector backing from the U.S.-based General Atlantic and Brazil’s largest private lender, the fintech platform raised $2.25 billion in its first trading day after pricing at the top end of its expected range. Shares soared 25% on day one as XP saw demand of roughly 14 times higher than was offered in its debut. The successful premiere — XP’s second pass at going public — sets other Brazilian IPO-hopefuls up well for potential U.S. debuts in the new year. As of Friday, XP shares are up nearly 12% since the IPO at $38.49, a market cap of about $21.2 billion.

10. TeamViewer IPO: Frankfurt listing

One of 2019’s largest European IPOs was that of German software company TeamViewer, which specializes in remote-access and connectivity applications. The cloud company was assigned a €5.8 billion valuation ahead of its late September listing, a notable premium for a filing in Frankfurt, where the market laden with industrial stocks. Its order book was oversubscribed almost instantly when it began selling shares to underwriters and other early buyers. Having raised roughly €2.2 billion on its first day of trading, TeamViewer has had a strong run since, rising about 29% as of Friday’s close and seeing its core profits nearly double. With the stock at €32.65 a share, its market cap currently sits at €6.58 billion (US $7.4 billion).


Company: cnbc, Activity: cnbc, Date: 2019-12-29  Authors: lizzy gurdus
Keywords: news, cnbc, companies, despite, alibaba, stock, lyft, cap, saudi, uber, ipo, aramco, busts, great, trading, billion, market, public, hong, day, shares


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The Aramco attack was an ‘act of war’ by Iran: Senior State Department official

Brian Hook, Special Representative for Iran and Senior Policy Advisor to the Secretary of State, at the United Against Nuclear Iran (UANI) 2018 Iran Summit in New York City. “Because of the Iran nuclear deal we’ve been accumulating risk of a regional conflict — and what Iran did to Saudi Arabia on September 14 was an act of war,” Hook told CNBC’s Hadley Gamble during the Doha forum in Qatar. Brian Hook U.S. special representative for IranRiyadh, alongside Washington and several other Western all


Brian Hook, Special Representative for Iran and Senior Policy Advisor to the Secretary of State, at the United Against Nuclear Iran (UANI) 2018 Iran Summit in New York City.
“Because of the Iran nuclear deal we’ve been accumulating risk of a regional conflict — and what Iran did to Saudi Arabia on September 14 was an act of war,” Hook told CNBC’s Hadley Gamble during the Doha forum in Qatar.
Brian Hook U.S. special representative for IranRiyadh, alongside Washington and several other Western all
The Aramco attack was an ‘act of war’ by Iran: Senior State Department official Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-14  Authors: natasha turak
Keywords: news, cnbc, companies, senior, iran, war, special, attack, department, saudi, act, state, hook, brian, official, aramco, representative


The Aramco attack was an 'act of war' by Iran: Senior State Department official

Brian Hook, Special Representative for Iran and Senior Policy Advisor to the Secretary of State, at the United Against Nuclear Iran (UANI) 2018 Iran Summit in New York City. (Photo by Michael Brochstein/SOPA Images/LightRocket via Getty Images) Michael Brochstein/SOPA Images | LightRocket | Getty Images

The September attack on Saudi Aramco’s facilities that temporarily shut down half of the kingdom’s oil production represented an act of war by the Iranian state, U.S. special representative for Iran Brian Hook told CNBC on Saturday. “Because of the Iran nuclear deal we’ve been accumulating risk of a regional conflict — and what Iran did to Saudi Arabia on September 14 was an act of war,” Hook told CNBC’s Hadley Gamble during the Doha forum in Qatar. Iran’s government has stringently denied involvement in the drone and missile attack, considered to be the most significant assault on oil infrastructure in history.

The asymmetric advantage that any terrorist regime enjoys, it’s impossible to eliminate. Brian Hook U.S. special representative for Iran

Riyadh, alongside Washington and several other Western allies, has accused Iran of involvement in the attack. But it has not directly accused the Islamic Republic of carrying out an act of war — something seen as an attempt to avoid greater escalation. “To launch an attack from your territory, if that is the case … this would be considered an act of war,” Saudi Minister of State for Foreign Affairs Adel al-Jubeir said in late September. But the kingdom maintains it is currently seeking a peaceful resolution. In response to the suggestion that nothing has been done to Iran as a result of its suspected attack, Hook emphasized the role of diplomacy and the United Nations — something that the Donald Trump administration has been accused of ignoring. “We have, but Iran is more diplomatically isolated as a consequence of it,” Hook said. “We still see a role for the UN Security Council to play, and now that Saudi has concluded its investigation, we hope they will do (something) with the UN Security Council.” The Trump administration has sent some 14,000 additional U.S. troops to the Gulf region since last spring and has pledged to continue supporting and enhancing Saudi Arabia’s air defenses.

Terrorism ‘impossible to eliminate’


Company: cnbc, Activity: cnbc, Date: 2019-12-14  Authors: natasha turak
Keywords: news, cnbc, companies, senior, iran, war, special, attack, department, saudi, act, state, hook, brian, official, aramco, representative


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Saudi Aramco briefly hits $2 trillion market cap on second day of trading

Signage of Saudi Aramco’s initial public offering (IPO) is seen during a news conference by the state oil company at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. Shares of Saudi Aramco surged on their second day of public trading, pushing the kingdom’s record IPO to a gargantuan $2 trillion valuation and briefly touching Crown Prince Mohammed bin Salman’s long-held target for the company. Share rose 10% to 38.7 riyals apiece ($10.32) but slipped back to 37 riyals within


Signage of Saudi Aramco’s initial public offering (IPO) is seen during a news conference by the state oil company at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019.
Shares of Saudi Aramco surged on their second day of public trading, pushing the kingdom’s record IPO to a gargantuan $2 trillion valuation and briefly touching Crown Prince Mohammed bin Salman’s long-held target for the company.
Share rose 10% to 38.7 riyals apiece ($10.32) but slipped back to 37 riyals within
Saudi Aramco briefly hits $2 trillion market cap on second day of trading Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, hits, briefly, valuation, second, day, ipo, riyals, oil, public, record, trillion, aramco, saudi, trading, cap, market


Saudi Aramco briefly hits $2 trillion market cap on second day of trading

Signage of Saudi Aramco’s initial public offering (IPO) is seen during a news conference by the state oil company at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019.

Shares of Saudi Aramco surged on their second day of public trading, pushing the kingdom’s record IPO to a gargantuan $2 trillion valuation and briefly touching Crown Prince Mohammed bin Salman’s long-held target for the company.

Share rose 10% to 38.7 riyals apiece ($10.32) but slipped back to 37 riyals within minutes of the market open.

The figure, nearly $1 trillion higher than the world’s next-largest public companies Microsoft and Apple, was long ridiculed and regarded with disbelief by much of the international financial community.

Riyadh on Wednesday made history by listing 1.5% of its state-run oil giant on its local stock exchange, the Saudi Tadawul, in what was the largest IPO on record. Shares went limit up, rising 10% in price as trading started, giving the company a valuation of $1.88 trillion on its first day of trading.


Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, hits, briefly, valuation, second, day, ipo, riyals, oil, public, record, trillion, aramco, saudi, trading, cap, market


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Saudi Aramco is called a ‘polarizing stock’ as investors question its independence

Saudi state-owned oil giant Saudi Aramco is set to become a “polarizing stock,” with analysts flagging corporate governance as a key risk for investors. Quite a polarizing stock, frankly. Saudi Aramco, the world’s largest initial public offering (IPO), debuted on the country’s stock exchange on Wednesday morning. Quite a polarizing stock, frankly. Geopolitical risks include instability in the region, with Molchanov flagging the attacks on Saudi Aramco oil facilities in September that shut down h


Saudi state-owned oil giant Saudi Aramco is set to become a “polarizing stock,” with analysts flagging corporate governance as a key risk for investors.
Quite a polarizing stock, frankly.
Saudi Aramco, the world’s largest initial public offering (IPO), debuted on the country’s stock exchange on Wednesday morning.
Quite a polarizing stock, frankly.
Geopolitical risks include instability in the region, with Molchanov flagging the attacks on Saudi Aramco oil facilities in September that shut down h
Saudi Aramco is called a ‘polarizing stock’ as investors question its independence Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: weizhen tan
Keywords: news, cnbc, companies, stock, governance, called, oil, investors, question, public, aramco, polarizing, molchanov, corporate, saudi, frankly, independence


Saudi Aramco is called a 'polarizing stock' as investors question its independence

“How do we invest in a company that … is 98% owned by the Saudi government, where the Saudi royal family calls all the shots? It does not matter what independent investors or independent board members think, frankly,” he told CNBC’s “Squawk Box” on Thursday.

The Saudi royal family “calls all the shots,” pointed out Pavel Molchanov, an energy analyst at investment bank Raymond James.

Saudi state-owned oil giant Saudi Aramco is set to become a “polarizing stock,” with analysts flagging corporate governance as a key risk for investors.

It is a very unique, very special situation. Quite a polarizing stock, frankly. Some people love it, and some people will never own it.

Aramco’s 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.

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

Amin H. Nasser, President and CEO of Aramco, rings the bell during the official ceremony marking the debut of Saudi Aramco’s initial public offering (IPO) on the Riyadh’s stock market, in Riyadh, Saudi Arabia, December 11, 2019.

Saudi Aramco eventually plans to list on international exchanges, said Molchanov. But even if that brings in more foreign money, those governance and geopolitical risks mean that it’s “not for everybody,” he added.

“It is a very unique, very special situation. Quite a polarizing stock, frankly. Some people love it, and some people will never own it,” he said.

Geopolitical risks include instability in the region, with Molchanov flagging the attacks on Saudi Aramco oil facilities in September that shut down half the kingdom’s total oil production.

John Driscoll, chief strategist at JTD Energy Services, said that incident “highlighted the vulnerability of the infrastructure.”

“Although the Saudis did recover, that becomes a concern. And then just general Mid East geopolitics and the potential for upheavals and dislocations, that gets factored in,” he said.

Meanwhile, Bernstein initiated coverage on Aramco with an “underperform” rating and a price target of 25.5 riyals per share. That represents a more than 27% decline from its Wednesday closing price of 35.20 riyals a share.

The stock had surged 10%, hitting the daily limit, in its first day of trading.

Bernstein analysts in their note also flagged the corporate governance issue as a risk.

“Aramco should trade at a discount rather than premium to international oil majors. Corporate governance has been identified as the key risk for investors, given that the (Kingdom of Saudi Arabia) will continue to own >98% of Aramco,” they wrote.

— CNBC’s Natasha Turak and Eustance Huang contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: weizhen tan
Keywords: news, cnbc, companies, stock, governance, called, oil, investors, question, public, aramco, polarizing, molchanov, corporate, saudi, frankly, independence


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Aramco’s record-breaking IPO is ‘not exactly a free market price,’ analyst says

A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018. “It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul. In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a w


A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018.
“It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul.
In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a w
Aramco’s record-breaking IPO is ‘not exactly a free market price,’ analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, exactly, trading, ipo, listing, saudi, international, market, aramcos, aramco, oil, recordbreaking, price, shares, free, dhabi, analyst


Aramco's record-breaking IPO is 'not exactly a free market price,' analyst says

A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018. Christopher Pike | Bloomberg | Getty Images

ABU DHABI, United Arab Emirates ⁠— Saudi Arabia made history this week as it debuted its crown jewel, Saudi Aramco, for public trading on the kingdom’s stock exchange. Shares shot up to the maximum allowed for the world’s largest-ever IPO at its launch, surging 10% on Wednesday and again on Thursday to briefly hit a valuation of $2 trillion before paring gains. The listing of 1.5% of the kingdom’s state-run oil giant reached a $1.88 trillion market cap on its first day of trading, putting it well above that of Microsoft and Apple. The astronomic $2 trillion figure, long pursued by Saudi Crown Prince Mohammed bin Salman since he announced his idea of the float in 2016, defied the expectations — and the ridicule — of much of the global finance community. But weak international interest, suspicions of heavily government-influenced local demand and scrapped plans to book-build outside the Gulf region have raised the question of how genuinely successful the public listing really is ⁠— and whether it could perform similarly if tested in international markets. “It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul. “I think it was a managed sale with a lot of government involvement,” said Rutledge, who served as an economic advisor to three U.S. administrations and the government of Kuwait. “They managed creating the book of buyers, but they also determined how many shares were sold. And so with that, you’ve got both levers. You can make the market cap almost whatever you want at that level.”

In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a wide range of institutions reflects trust in our long-term strategy.” After shares began trading Wednesday, Aramco CEO Amin Nasser told CNBC that the initial pricing of 32 riyals per share ($8.53) “was agreed based on full analysis and evaluation” and that the IPO on the Tadawul is “a sign of how strong the stock exchange is.” Nasser noted that local demand for shares was five times oversubscribed and said the listing “embodies Vision 2030,” the agenda set out by the crown prince to diversify the Saudi economy. Still, market and regional analysts were quick to point out that the listing fell short of the crown prince’s grand vision, which initially targeted an international listing. The kingdom had to rely predominantly on local investors after canceling roadshows in London and New York due to paltry foreign investor interest.

“It’s a success on paper. They delivered on a complicated IPO, the largest in the world,” said Ayham Kamel, head of the Middle East and Africa practice at Eurasia Group. “But the key risk facing Mohammed bin Salman is that a small IPO does not really move the needle on his diversification program, even if readjusted as part of a new Vision 2030. He needs to sell more of the company and begin to attract foreign investors.” Saudi Arabia’s recently announced 2020 budget revealed a budget deficit increase to 6.4% of gross domestic product from 4.2% in 2019, as its economy feels the pain of fiscal tightening and lower oil prices. The International Monetary Fund says Saudi Arabia needs oil at $78 a barrel to balance its budget ⁠— a level not seen in five years, and far from the $58 to $63 range of the last few months. Several energy forecasters see oil reaching only $70 a barrel by the end of 2020.

Amin H. Nasser, President and CEO of Aramco, rings the bell during the official ceremony marking the debut of Saudi Aramco’s initial public offering (IPO) on the Riyadh’s stock market, in Riyadh, Saudi Arabia, December 11, 2019. Saudi Aramco | Reuters


Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, exactly, trading, ipo, listing, saudi, international, market, aramcos, aramco, oil, recordbreaking, price, shares, free, dhabi, analyst


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Aramco’s record-breaking IPO is ‘not exactly a free market price,’ analyst says

A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018. “It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul. In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a w


A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018.
“It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul.
In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a w
Aramco’s record-breaking IPO is ‘not exactly a free market price,’ analyst says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, shares, trading, listing, aramcos, price, analyst, saudi, free, dhabi, ipo, oil, international, recordbreaking, aramco, market, exactly


Aramco's record-breaking IPO is 'not exactly a free market price,' analyst says

A Saudi Aramco logo sits on display during the Abu Dhabi International Petroleum Exhibition & Conference in Abu Dhabi, United Arab Emirates, on Nov. 13, 2018. Christopher Pike | Bloomberg | Getty Images

ABU DHABI, United Arab Emirates ⁠— Saudi Arabia made history this week as it debuted its crown jewel, Saudi Aramco, for public trading on the kingdom’s stock exchange. Shares shot up to the maximum allowed for the world’s largest-ever IPO at its launch, surging 10% on Wednesday and again on Thursday to briefly hit a valuation of $2 trillion before paring gains. The listing of 1.5% of the kingdom’s state-run oil giant reached a $1.88 trillion market cap on its first day of trading, putting it well above that of Microsoft and Apple. The astronomic $2 trillion figure, long pursued by Saudi Crown Prince Mohammed bin Salman since he announced his idea of the float in 2016, defied the expectations — and the ridicule — of much of the global finance community. But weak international interest, suspicions of heavily government-influenced local demand and scrapped plans to book-build outside the Gulf region have raised the question of how genuinely successful the public listing really is ⁠— and whether it could perform similarly if tested in international markets. “It’s not exactly what you might call a free market price,” John Rutledge, chief investment officer at investment firm Safanad, told CNBC in Abu Dhabi shortly after trading began on the Saudi Tadawul. “I think it was a managed sale with a lot of government involvement,” said Rutledge, who served as an economic advisor to three U.S. administrations and the government of Kuwait. “They managed creating the book of buyers, but they also determined how many shares were sold. And so with that, you’ve got both levers. You can make the market cap almost whatever you want at that level.”

In a statement, Saudi Aramco replied to the suggestion saying, “We believe the demand from a broad base of individual investors and such a wide range of institutions reflects trust in our long-term strategy.” After shares began trading Wednesday, Aramco CEO Amin Nasser told CNBC that the initial pricing of 32 riyals per share ($8.53) “was agreed based on full analysis and evaluation” and that the IPO on the Tadawul is “a sign of how strong the stock exchange is.” Nasser noted that local demand for shares was five times oversubscribed and said the listing “embodies Vision 2030,” the agenda set out by the crown prince to diversify the Saudi economy. Still, market and regional analysts were quick to point out that the listing fell short of the crown prince’s grand vision, which initially targeted an international listing. The kingdom had to rely predominantly on local investors after canceling roadshows in London and New York due to paltry foreign investor interest.

“It’s a success on paper. They delivered on a complicated IPO, the largest in the world,” said Ayham Kamel, head of the Middle East and Africa practice at Eurasia Group. “But the key risk facing Mohammed bin Salman is that a small IPO does not really move the needle on his diversification program, even if readjusted as part of a new Vision 2030. He needs to sell more of the company and begin to attract foreign investors.” Saudi Arabia’s recently announced 2020 budget revealed a budget deficit increase to 6.4% of gross domestic product from 4.2% in 2019, as its economy feels the pain of fiscal tightening and lower oil prices. The International Monetary Fund says Saudi Arabia needs oil at $78 a barrel to balance its budget ⁠— a level not seen in five years, and far from the $58 to $63 range of the last few months. Several energy forecasters see oil reaching only $70 a barrel by the end of 2020.

Amin H. Nasser, President and CEO of Aramco, rings the bell during the official ceremony marking the debut of Saudi Aramco’s initial public offering (IPO) on the Riyadh’s stock market, in Riyadh, Saudi Arabia, December 11, 2019. Saudi Aramco | Reuters


Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, shares, trading, listing, aramcos, price, analyst, saudi, free, dhabi, ipo, oil, international, recordbreaking, aramco, market, exactly


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Saudi Aramco is called a ‘polarizing stock’ as investors question its independence

Saudi state-owned oil giant Saudi Aramco is set to become a “polarizing stock,” with analysts flagging corporate governance as a key risk for investors. Quite a polarizing stock, frankly. Saudi Aramco, the world’s largest initial public offering (IPO), debuted on the country’s stock exchange on Wednesday morning. Quite a polarizing stock, frankly. Geopolitical risks include instability in the region, with Molchanov flagging the attacks on Saudi Aramco oil facilities in September that shut down h


Saudi state-owned oil giant Saudi Aramco is set to become a “polarizing stock,” with analysts flagging corporate governance as a key risk for investors.
Quite a polarizing stock, frankly.
Saudi Aramco, the world’s largest initial public offering (IPO), debuted on the country’s stock exchange on Wednesday morning.
Quite a polarizing stock, frankly.
Geopolitical risks include instability in the region, with Molchanov flagging the attacks on Saudi Aramco oil facilities in September that shut down h
Saudi Aramco is called a ‘polarizing stock’ as investors question its independence Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: weizhen tan
Keywords: news, cnbc, companies, public, frankly, molchanov, stock, called, investors, governance, saudi, polarizing, oil, corporate, aramco, question, independence


Saudi Aramco is called a 'polarizing stock' as investors question its independence

“How do we invest in a company that … is 98% owned by the Saudi government, where the Saudi royal family calls all the shots? It does not matter what independent investors or independent board members think, frankly,” he told CNBC’s “Squawk Box” on Thursday.

The Saudi royal family “calls all the shots,” pointed out Pavel Molchanov, an energy analyst at investment bank Raymond James.

Saudi state-owned oil giant Saudi Aramco is set to become a “polarizing stock,” with analysts flagging corporate governance as a key risk for investors.

It is a very unique, very special situation. Quite a polarizing stock, frankly. Some people love it, and some people will never own it.

Aramco’s 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.

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

Amin H. Nasser, President and CEO of Aramco, rings the bell during the official ceremony marking the debut of Saudi Aramco’s initial public offering (IPO) on the Riyadh’s stock market, in Riyadh, Saudi Arabia, December 11, 2019.

Saudi Aramco eventually plans to list on international exchanges, said Molchanov. But even if that brings in more foreign money, those governance and geopolitical risks mean that it’s “not for everybody,” he added.

“It is a very unique, very special situation. Quite a polarizing stock, frankly. Some people love it, and some people will never own it,” he said.

Geopolitical risks include instability in the region, with Molchanov flagging the attacks on Saudi Aramco oil facilities in September that shut down half the kingdom’s total oil production.

John Driscoll, chief strategist at JTD Energy Services, said that incident “highlighted the vulnerability of the infrastructure.”

“Although the Saudis did recover, that becomes a concern. And then just general Mid East geopolitics and the potential for upheavals and dislocations, that gets factored in,” he said.

Meanwhile, Bernstein initiated coverage on Aramco with an “underperform” rating and a price target of 25.5 riyals per share. That represents a more than 27% decline from its Wednesday closing price of 35.20 riyals a share.

The stock had surged 10%, hitting the daily limit, in its first day of trading.

Bernstein analysts in their note also flagged the corporate governance issue as a risk.

“Aramco should trade at a discount rather than premium to international oil majors. Corporate governance has been identified as the key risk for investors, given that the (Kingdom of Saudi Arabia) will continue to own >98% of Aramco,” they wrote.

— CNBC’s Natasha Turak and Eustance Huang contributed to this report.


Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: weizhen tan
Keywords: news, cnbc, companies, public, frankly, molchanov, stock, called, investors, governance, saudi, polarizing, oil, corporate, aramco, question, independence


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Saudi Aramco hits $2 trillion market cap on second day of trading

Shares of Saudi Aramco surged on their second day of public trading, pushing the kingdom’s record IPO to a gargantuan $2 trillion valuation and briefly touching Crown Prince Mohammed bin Salman’s long-held target for the company. Share rose 10% to 38.7 riyals apiece ($10.32) but slipped back to 37 riyals within minutes of the market open. The figure, nearly $1 trillion higher than the world’s next-largest public companies Microsoft and Apple, was long ridiculed and regarded with disbelief by muc


Shares of Saudi Aramco surged on their second day of public trading, pushing the kingdom’s record IPO to a gargantuan $2 trillion valuation and briefly touching Crown Prince Mohammed bin Salman’s long-held target for the company.
Share rose 10% to 38.7 riyals apiece ($10.32) but slipped back to 37 riyals within minutes of the market open.
The figure, nearly $1 trillion higher than the world’s next-largest public companies Microsoft and Apple, was long ridiculed and regarded with disbelief by muc
Saudi Aramco hits $2 trillion market cap on second day of trading Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, riyals, public, day, cap, trading, valuation, shares, record, trillion, hits, saudi, second, ipo, aramco, market


Saudi Aramco hits $2 trillion market cap on second day of trading

Shares of Saudi Aramco surged on their second day of public trading, pushing the kingdom’s record IPO to a gargantuan $2 trillion valuation and briefly touching Crown Prince Mohammed bin Salman’s long-held target for the company.

Share rose 10% to 38.7 riyals apiece ($10.32) but slipped back to 37 riyals within minutes of the market open.

The figure, nearly $1 trillion higher than the world’s next-largest public companies Microsoft and Apple, was long ridiculed and regarded with disbelief by much of the international financial community.

Riyadh on Wednesday made history by listing 1.5% of its state-run oil giant on its local stock exchange, the Saudi Tadawul, in what was the largest IPO on record. Shares went limit up, rising 10% in price as trading started, giving the company a valuation of $1.88 trillion on its first day of trading.


Company: cnbc, Activity: cnbc, Date: 2019-12-12  Authors: natasha turak
Keywords: news, cnbc, companies, riyals, public, day, cap, trading, valuation, shares, record, trillion, hits, saudi, second, ipo, aramco, market


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Saudi Aramco shares surge 10% as historic IPO begins trading

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. It gives it a valuation of $1.88 trillion and makes it the largest listed company in the world. The launch follows a weeks-long local roadshow around the Middle East that saw Aramco’s local l


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.
It gives it a valuation of $1.88 trillion and makes it the largest listed company in the world.
The launch follows a weeks-long local roadshow around the Middle East that saw Aramco’s local l
Saudi Aramco shares surge 10% as historic IPO begins trading Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-12-11  Authors: natasha turak
Keywords: news, cnbc, companies, valuation, company, shares, public, trading, local, results, market, aramco, listing, saudi, surge, trillion, riyals, ipo, begins, historic


Saudi Aramco shares surge 10% as historic IPO begins trading

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. It gives it a valuation of $1.88 trillion and makes it the largest listed company in the world. Aramco’s public debut, which listed 1.5% of its shares locally on the Saudi Tadawul, is the largest on record — topping the $25 billion Alibaba raised when it went public in September 2014. The oil giant’s IPO has surpassed its earlier valuation of $1.7 trillion, announced when share pricing was disclosed last week at the top of market range. But the $1.88 trillion valuation remains below what the kingdom had initially been targeting and relied heavily on local investors after canceling international roadshows due to lackluster foreign interest.

Aramco CEO Amin Nasser told reporters 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 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.

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?


Company: cnbc, Activity: cnbc, Date: 2019-12-11  Authors: natasha turak
Keywords: news, cnbc, companies, valuation, company, shares, public, trading, local, results, market, aramco, listing, saudi, surge, trillion, riyals, ipo, begins, historic


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