MIDEAST STOCKS-Saudi stocks tumble as investors braces for Aramco IPO - Agricultural Commodities - Reuters:
Saudi's stocks suffered their biggest
intraday decline since late August on Sunday as local
institutions sold shares to prepare for Saudi Aramco's listing,
while Dubai was dragged down by its top lender Emirates NBD.
Aramco on Sunday announced its intention to float on the
domestic stock market in what could be the world's biggest
listing as the kingdom seeks to diversify its economy away from
oil.
Aramco did not give a timeframe or say how much of the
company it would sell, but sources have told Reuters the oil
company could offer 1%-2% of its shares, raising as much $20
billion-$40 billion.
Some local investors could be selling other shares in order
to shift investments to Aramco, in what could be a case of
"short-term pain for long-term gain", said Salah Shamma, head of
investment, MENA, at Franklin Templeton Emerging Markets Equity.
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