Aramco Drops below IPO Price in Blow to Saudi Economic Plan

Saudi Aramco shares dropped below their IPO level for the first time as a looming price war in global crude markets battered the outlook for the kingdom’s flagship oil company. The stock fell as much as 9.2% in Riyadh to trade at 29.95 riyals, compared with the 32 riyals at which they launched on Dec. 11. It trimmed losses to 8.6% as of 1:20 p.m. local time, while the benchmark Tadawul All Share Index lost 8.1%. Trading with Aramco will be suspended if it falls 10%. Markets across the Middle East tumbled Sunday after Saudi Arabia ignited an all-out oil price war by slashing pricing for its crude, making the deepest cuts in at least 20 years on its main grades. The declines for Saudi Aramco are a setback for a government that had celebrated last year’s record $29 billion initial public offering as a centerpiece of Crown Prince Mohammad bin Salman’s drive to open up the energy-dependent economy.

Source: https://www.bloomberg.com/news/articles/2020-03-08/aramco-slumps-below-ipo-price-as-kingdom-starts-oil-price-war?srnd=premium-middle-east

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