This Monday on the Tadawul stock exchange started trading, the main interest of investors was attracted by the campaign''s largest oil company, Saudi Aramco. Already in the first day of trading the share price rose by 10%. Given the fact that the paper was posted on a local site, foreign investors could be interested to buy a good stake in the company.
Of Zachary Cefaratti, who is the CEO of Dalma Capital Management acquired shares through three funds. In a recent interview, he spoke about the fact that if the price of paper will rise, SA total capitalization will increase to 2 trillion USD. We remind you that Saudi Aramco produces about 10% of oil worldwide last year, net profit of 111 billion USD. Thus, the enterprise has bypassed its main competitors Exxon Mobil and Royal Dutch Shell.
When in early December the company held its IPO, it has become the largest and most profitable in the history, total capitalization was 25.6 billion USD. Before SA held an IPO on record the positions for the initial placement of shares remained the Chinese company Alibaba Group Holding Ltd.
That Saudi Aramco plans to enter the market became known in 2014, then the government of Saudi Arabia SA IPO was considered as a vital diversification of the economy of the Kingdom, which was to reduce the level of dependence on oil exports. Income, who will receive the Kingdom from the placement will be spent on reforms and the national welfare Fund.
Saudi Prince Mohammed bin Salman personally made the decision to start trading. Igor Yushkov, who is a leading analyst of the national energy security Foundation pointed out that the placing shares been carefully chosen. Experts believe that such actions by the government is an attempt to provoke an oil crisis and increase demand and prices for raw materials.
Expert of the Center for Analytics, and financial technologies Anton Bykov says - “the crown Prince of Saudi Arabia wanted to achieve a capitalization of 2 trillion USD. After today's growth stocks, there are only 6.3%, and the goal will be achieved. At least as long as the shares begin to trade on Western exchanges, where the possibility of a speculative attack and alternative views of investors.”
It is therefore not surprising that the sale of shares was selected as the Saudi Arabia Tadawul, where the process it is possible to control.