Sunday 8 March 2020

Aramco trades below IPO price for first time, after OPEC pact unravels - Reuters

Aramco trades below IPO price for first time, after OPEC pact unravels - Reuters:

Shares of Saudi state oil company Aramco 2222.SE slumped below their initial public offering (IPO) price on Sunday for the first time since they began trading in December, after OPEC’s pact with Russia to restrict oil supplies fell apart on Friday. 

Aramco shares were down 6.2% at 30.85 riyals ($8.22) at 0852 GMT, their sharpest percentage fall in a day, and below the IPO price of 32 riyals. The Saudi market .TASI was down 7.4%.

Aramco’s record IPO in December gave it a price tag of $1.7 trillion, making it the world’s most valuable company. The stock hit an intraday high of 38.70 riyals on its second day of trading, but has eased since then.

The shares have fallen more than 11% since the start of the year amid concerns the coronavirus outbreak will slow oil demand from China and hurt the global economy.

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