Analysts See Further Upside to Aramco’s Stock After Listing

Investing.com – Saudi Aramco (SE:), Saudi Arabia’s state-owned oil company, will have plenty of support when it begins trading later this week, according to analysts.

“I see further upside to the stock after listing due to the fact that investors will be chasing the stock to complete their exposure, since the deal was oversubscribed,” said Ali El Adou, head of asset management at Daman Investiments in Dubai, in a Bloomberg report.

The article pointed out that Aramco promised to pay at least $75 billion of ordinary dividends in 2020, and that dividend will not fall until after 2024. That sustainability will provide support to the company’s stocks, Bloomberg said.

The state-owned oil giant set its IPO at 32 riyals ($8.52) per share, which is the top of its indicative range. The stocks will be listed on the Tadawul, Saudi Arabia’s local stock exchange and will begin to trade on Dec. 12

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.