Mubasher TV
Contact Us Advertising   العربية

Aramco IPO to improve TASI’s MSCI emerging index weight – Aljazira Capital

Aramco IPO to improve TASI’s MSCI emerging index weight – Aljazira Capital
Aramco’s free float could hit SAR 110 billion
SAUDI ARAMCO
2222
-2.50% 31.25 -0.80

Riyadh – Mubasher: Saudi Stock Exchange’s (Tadawul) All Share Index (TASI) is expected to outperform its counterparts in other developing countries, after the world’s biggest-ever initial public offering (IPO) of oil giant Saudi Arabian Oil Co (Aramco), according to brokerage services provider Aljazira Captial.

The world’s largest oil producer managed to raise SAR 96 billion ($25.6 billion), with a price of SAR 32 per share, which valued the company at SAR 6.4 trillion ($1.7 trillion).

In addition, Aramco’s free float could hit SAR 110 billion, if it exercised institutional over-allotment option for price stability.

Aljazira projected the float adjusted weight to come in at a range from 9.6% to 10.9% in TASI.

As a result, this “post-Aramco listing weight” of the Saudi index in the Morgan Stanley Capital Index (MSCI) emerging index will be boosted to 3.3%, Aljazira said.

It will also attract from SAR 6.6 billion and SAR 8.1 billion from passive funds, the borkerage company added.

Shares of Aramco saw a leap of 10% in early Wednesday trading at Tadawul, rising to SAR 35.2 per share, and hitting the daily price limit.