"It seems that a discount on the valuation of Western oil companies is justified", Bernstein said of Aramco, whose shares gained the maximum on their Riyadh stock at their mid-term debits of up to 10%.
Analysts at Sanford C. Bernstein & Co. said after the first trading day it's already time to cash out.
After over a year of on-again, off-again discussion to make Saudi Arabia's state-controlled oil and gas producer, Aramco, a partially public company (or, in the context of state ownership, a partially privatized one), the oil giant officially debuted on Saudi's Tadawul stock exchange on Wednesday, listing 1.5% of the company at a total valuation of $1.7 trillion, the largest amount the world has ever seen in any IPO market.
Wealthy Saudi families are reportedly under pressure from the government to invest in the Aramco stock, with nationalists calling it a patriotic duty.
While hitting the target may vindicate Saudi officials, it could complicate any plans to sell part of Aramco's shares overseas as originally envisaged by Prince Mohammed in 2016, when he said a dual listing could raise as much as US$100 billion. Compared to USA energy giant Exxon Mobil, the value is less than $ 300 billion.
Once one of the most secretive companies in the world, Aramco opened its accounts this year and announced that it posted $111 billion in net profit in 2018, making it the most profitable company in the world.
The float in Saudi Arabia is expected to be followed by a further listing on an worldwide exchange at a later date.
Thursday is the last weekly trading day in Muslim Saudi Arabia.
According to Samba Capital, which managed Aramco's IPO, more than 97% of the retail investors (who had access to a third of listed shares) and 75% of institutional investors in the IPO are based in Saudi Arabia.
Aramco shares will also join the Tadawul index and global benchmarks such as MSCI and FTSE next week, which analysts said should fuel demand, particularly from "passive" investors.
"When Aramco reaches $ 2 trillion, investors will discuss: why should it go higher ... while its owners weigh $ 2 trillion?" Many foreign managers who refrained from buying the shares also cited corporate governance concerns and threats to the company's facilities after attacks this year.
Pearl Jam announce BST Hyde Park 2020 show
In news that'll make the OG rockers quite excited, Pearl Jam has been announced as the next headliner for BST Hyde Park . Swift previously played Hyde Park in 2015 and it's not hard to work out why she's chosen to return.
Russia Raises Concerns Over new US Ballistic Missile Test
Under the treaty, both sides destroyed the whole class of intermediate- and short-range missiles in a span of four years. Daryl Kimball, executive director of the Arms Control Association, said the Pentagon's missile project is a mistake.