What’s next for Saudi Aramco share price after US$2.03 trillion valuation?

Saudi Aramco’s long-term stock value will depend a lot on how it fares on the international stage, said one top analyst.

The headlines surrounding Saudi Aramco’s (Tadawul: 2222) initial public offering this December have mostly been hyperbolic, and as it appears, rightfully so.

The state-owned oil and gas firm’s IPO on the local stock exchange earlier this month has not only surpassed expectations; it shattered all records to become the biggest listing in history with US$25.6 billion raised.

Upon launching, share price immediately shot beyond the projected fluctuation limit of 10%, achieving a valuation of US$2.03 trillion on day two of trading, a feat for a flotation of its size.

Earlier this week on Monday, 16 December, shares were trading as much as 21% above the listing’s opening price of 32 Saudi riyals (US$8.53) per share.

Can share price stay at the same level?

With the market reception so far having been nothing short of impressive, how will share price move in the coming months?

This would depend on a multitude of political factors, according to analyst Ariel Cohen, Director of the Energy, Growth, and Security Program at the International Tax and Investment Center.

Those factors include ‘uncertainty due to low oil prices, climate change concerns, and geopolitical unrest in the region’, Cohen wrote in a commentary on Forbes.

He added that global criticism for the murder of Saudi Arabian journalist Jamal Khashoggi, tanker incidents in the Persian Gulf, as well as foreign missile attacks on two oil facilities in September, also ‘justly appear as strong disincentives for long-term institutional investors’.

Learn how to trade company shares with an IG demo account now

Lacking international investors

Additionally, with the bulk of funds so far made up of local institutions and government agencies, ‘current investment still lacks the international diversification sought by executives’, Cohen further noted.

Saudi Aramco’s shares are set to become available on foreign bourses starting later this week, including the Morgan Stanley Capital International Emerging Markets Index and the FTSE All-World Index.

Cohen stated that while the local listing has been ‘unequivocally impressive’, the ‘real test’ will come as shares become available overseas.

‘This week should provide better insight into the appetite of international investors, and the longer term viability of the historic IPO,’ he concluded.

Saudi Aramco shares are currently trading at 36.30 riyals.

Practise trading CFDs and other products with an IG demo account now

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.