Aramco wraps up 1.6 per cent higher in third consecutive session of gains


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Aramco wraps up 1.6 per cent higher in third consecutive session of gains

On Sunday, the 15th of December 2019, shares of Saudi’s state-owned oil giant, Aramco, the world’s most profitable company on an unaudited basis, wrapped up the day in Riyadh Stock Exchange 1.63 per cent higher to 37.4 Saudi Riyals or $9.97, stoking the company’s market valuation towards a $2 trillion level which it had topped last week.

In point of fact, the Kingdom of Saudi Arabia’s flagship oil giant, Aramco had listed 1.5 per cent of its shares on December 11th in Saudi’s local stock exchange, which eventually had raised an all-time high IPO valuation of $25.6 billion, surpassing China’s e-commerce Goliath Alibaba’s 2014-NYSE listing that scored a $25 billion at its IPO.

Aside from that, following its initial public offering that listed the shares at 32 Saudi Riyals in Riyadh’s Tadawul Exchange, proffering the Saudi oil mammoth a market cap of $1.7 billion, shares of Aramco raised a maximum permitted 10 per cent at its debut, proffering the Saudi Aramco a market valuation of $2 trillion, long-sought by the Saudi Crown Prince Mohammed bin Salman as a part of his greater plan to diversity Saudi’s oil-dependent economy.

Nonetheless, despite Riyadh’s Tadawul Exchange’s confirmation of topping a $2 trillion market cap last week, analysts and economists expressed steep scepticism over the Saudi oil giant’s stark valuation, while analysts at Bernstein valued the company at $1.36 trillion last week, but Refinitiv data showed a market cap of $1.96 trillion, just a notch shy of a $2 trillion slated earlier.