Saudi Aramco shares to begin trading on Wednesday

Saudi Arabia’s Aramco record the biggest deal in world's IPO history

Saudi Aramco’s shares will begin trading on the Saudi stock exchange, Tadawul, on Wednesday, December 11.

Raising $25.6 billion in the world’s biggest initial public offering, the oil company’s shares will trade under the symbol ‘2222’ with a 10 per cent daily price fluctuation limit, according to a bourse statement on Friday.

“On the first day of trading only, the opening auction for the Saudi Arabian Oil Company (Saudi Aramco) will be extended for 30 minutes,” Tadawul said in the statement.

With a 30-minute extension on the opening auction, Aramco’s trading session will start from 9:30am to 10:30am on December 11, and trade continuously from 10:30am to the usual market close auction at 3:00pm.

State oil giant Saudi Aramco will issue 3 billion shares at a price of 32 riyals each, meaning the 96 billion riyals (Dh94bn) raised will be the highest for a stock market debut. The deal values the world’s most profitable company at $1.7 trillion, Saudi Aramco said in an announcement on Thursday.

The company also said that it had granted an option to the IPO‘s stabilising manager, Goldman Sachs Saudi Arabia, allowing for an additional 450 million shares to be issued to cover over-allotments for an offer that closed more than 4.6-times oversubscribed. If the option is granted, these additional shares could be issued at the offer price at any time during the first 30 days of trading, and would bring the total amount raised via the IPO to 110.4bn riyals.

Given that the institutional tranche of the offer was more than 6x oversubscribed, it is “highly likely” that Goldman Sachs will exercise this option, Dubai-based fund manager Dalma Capital said in a note on Sunday.