Aramco shares up 1.6% in third consecutive day of gains

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Aramco shares up 1.6% in third consecutive day of gains

The shares of Saudi Aramco rose by 1.63 per cent, to a whooping 37.4 riyals in three consecutive days of gains, getting the value of the company back towards $2 trillion mark it topped previous week.

The firm listed 1.5 per cent of its stocks at the rate of 32 riyals on December 11 on the Tadawul exchange in the biggest initial IPO of the world.

The shares, which were initially valued at the sum of $1.7 trillion, topped at $2 trillion last Thursday, a value desired by Mohammed bin Salman, the Saudi Crown Prince since a long time.

The IPO forms the core of the Saudi prince’s plans for variegating the economy from its reliance on oil.

Further demand is expected from investors this week, specifically from the passive investors as the shares of Aramco will merge with Tadawal index as well as worldwide benchmarks like MSCI.

Aramco is known as the most profitable and largest company in the world; however, its valuation experienced scepticism among the foreign investors because the IPO had been marketed.

The analysts from Bernstein previous week placed Aramco’s value at the sum of $1.36 trillion, mentioning corporate governance concern as the government reserves 98.5 per cent of the company.

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