On Wednesday, there was a debut auction of the state oil company Saudi Aramco at the Tadawul Exchange. The securities grew by 10%, this is the maximum daily limit at which the price of the asset can change.
During the last IPO, Saudi Aramco was valued at $ 1.7 trillion. Oil giant shares were offered for $ 8.53 per share. Saudi Arabia managed to raise $ 25.6 billion.
The estimate seems like an abstract huge sum, but it disappointed the prince of Saudi Arabia, Mohammed bin Salman, who hoped for raising $ 2 trillion. The reputable Financial Times reported that Saudi Arabia authorities are forcing financial institutions and individuals to buy Saudi Aramco shares in the secondary market in order to bring capitalization to the target level. It also became known that those wealthy Saudi families who had already participated in the initial offering had received such requirements.
Two years ago there was an incident regarding the securities. Then Saudi authorities held several hundred wealthy investors at the Ritz-Carlton. This “home” arrest lasted about three months and ended only when assets with a total value of about one hundred billion dollars were assigned to the state. There is information that in order to achieve their goals, the authorities of the Saudi Arabia used not only psychological pressure, but also torture.
Experts believe that the policy of “twisting hands” will allow the government of the Kingdom to achieve the target for capitalization.
Saudi state funds often intervene in the stock market to support it. For example, they intensified the purchase of shares when foreign investors began to leave the Kingdom after killing the journalist Jamal Khashoggi at the end of last year.
Saudi Aramco has moved the Saudi stock market to the ninth position in the global ranking. The initial offering of Saudi Aramco is expected to be the largest in history. Alibaba Internet retailer record has been broken.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group