Wednesday, February 1, 2023
  • Home
  • Marketing Strategies
  • Privacy Policy
  • Contact Us
Business News
  • Home
  • Personal Finance
  • Business Trends
  • Business Ideas
  • Marketing Strategies
  • Stock Market
No Result
View All Result
Business News
Home Stock Market

How to Buy the Saudi Aramco IPO

citof_l7l8ib by citof_l7l8ib
February 21, 2020
in Stock Market
0
How to Buy the Saudi Aramco IPO
0
SHARES
135
VIEWS
Share on FacebookShare on Twitter

Saudi Aramco was the talk of Wall Street after the Saudi oil giant completed the world’s largest initial public offering on Dec. 11. Aramco stock hit the ground running on its first day of trading, gaining 10% and quickly reaching its daily upward limit on the Tadawul, Saudi Arabia’s stock exchange.Unfortunately, it’s difficult for most U.S. investors to get in on the Saudi Aramco action at this point.Saudi Aramco Stock By the NumbersSaudi Aramco raised $25.6 billion in its IPO, which valued the company at about $1.7 trillion. For perspective, Apple (ticker: AAPL) is currently the largest U.S. public company at a market cap of around $1.2 trillion. Aramco’s prospectus indicates the company earned about $111 billion in 2018, nearly double Apple’s profits. In fact, Aramco has five times more oil reserves than Exxon Mobil Corp. (XOM), Chevron Corp. (CVX), Royal Dutch Shell (RDS.A), Total (TOT) and BP (BP) combined.Bernstein estimates Aramco’s profits rise by $1.5 billion for every $1 rise in crude oil prices. Saudi Arabia and its OPEC partners agreed earlier this month to extend their crude oil production cuts from 1.2 million barrels per day to 1.7 million barrels per day in the first quarter of 2020 in an effort to maintain balance in the global oil market and support prices.Aramco’s IPO shares were priced at 32 Saudi riyals, or about $8.53. Shares finished their first day of trading at 35.2 riyals, the upper limit of their allowed daily trading range on the Tadawul.No U.S. Listing for NowAramco decided in November that it would not list its IPO shares on a major U.S. exchange, making it difficult for the average U.S. investor to gain access to the stock. Tadawul has strict rules about foreign investment. Qualified institutional foreign investors must have at least $5 billion in assets and at least five years of investing experience to be eligible to trade on the Saudi exchange. Prior to 2015, foreign investors were prohibited from trading on the Tadawul exchange entirely.Critics of Aramco pulling a potential U.S. listing have said the Saudi government wasn’t happy that it could not initially achieve a $2 trillion valuation via an international listing.“Offering a tiny float in a friendly local market is a pretty good way to get the stock to trade up, and there will be other positive pressure,” Matt Levine, entrepreneur and former investment banker at Goldman Sachs, wrote this week.Saudi Arabia is offering small Saudi investors one bonus share of Aramco stock for each 10 shares they initially buy and hold for at least six months in an effort to deter early selling.JJ Kinahan, chief market strategist at TD Ameritrade, says the restrictions on foreign investment mean customers at TD Ameritrade and other popular U.S. brokers don’t yet have access to Aramco stock.“Not at this time,” Kinahan said. “But it seems that any listing this magnitude would draw interest.” ADRs and ETFs for Saudi Aramco StockIn the meantime, U.S. investors should be on the lookout for an Aramco American depositary receipt, or ADR. ADRs are certificates issued by American banks that represent share purchased by the banks on foreign exchanges. If these ADRs trade over-the-counter in the U.S. rather than on a major exchange, they are not subject to the disclosures and regulatory standards that deterred the Saudis from a major international listing in the first place.ADRs of large international companies such as Volkswagen (VWAPY), Nintendo (NTDOY) and Samsung (SSNLF) all trade over-the-counter in the U.S.In addition, MSCI is reportedly planning on including Aramco in several stock indexes starting next week, so U.S. investors should watch for potential exchange-traded funds with exposure to Aramco.

Related posts

10 of the Best Tech Stocks to Buy for 2020

10 of the Best Tech Stocks to Buy for 2020

February 21, 2020
12 of the Best Emerging Markets Stocks to Buy

12 of the Best Emerging Markets Stocks to Buy

February 21, 2020
Tags: Best StocksenergyFinancial AdvisorsinvestingInvesting 101oilpicksSaudi ArabiaSaudi Aramcostock marketStock Market NewsWayne Duggan
Previous Post

How One Couple Paid Off $74,000 in 2 Years

Next Post

5 of the Best Industries for Investors in 2020

Next Post
5 of the Best Industries for Investors in 2020

5 of the Best Industries for Investors in 2020

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED NEWS

Ignoring Workplace Harassment Could Destroy Your Business

Ignoring Workplace Harassment Could Destroy Your Business

3 years ago
GM Plans to Pull Out of Australia, New Zealand and Thailand

GM Plans to Pull Out of Australia, New Zealand and Thailand

3 years ago
App Lets Customers Invest in Your Small Restaurant By Paying for Food — in Advance

App Lets Customers Invest in Your Small Restaurant By Paying for Food — in Advance

3 years ago
401(k)s Hit Records as Workers Sock Away More, Stocks Jump

401(k)s Hit Records as Workers Sock Away More, Stocks Jump

3 years ago

FOLLOW US

BROWSE BY CATEGORIES

  • Business Ideas
  • Business Trends
  • Marketing Strategies
  • Personal Finance
  • Stock Market

BROWSE BY TOPICS

Amazon.com Apple Inc. Associated Press Banking and Credit Best Stocks Business Growth Business Ideas Business News Business Planning Business Trends Collections Business Collections Political Collections Top News Collections US Collections World Debt Facebook Finance Ideas Financial Advisors financial literacy Geoff Williams Google interest rates investing Investing 101 John Divine loans Local Marketing Management news Marketing Strategies Marketing Tips Maryalene LaPonsie money personal budgets personal finance picks Small Business Trends stock market Stock Market News stock portfolio student loans Susan Johnston Taylor Susannah Snider technology Wayne Duggan

POPULAR NEWS

  • 20 Things Your Business Still Doesn’t Get About Hyperlocal Marketing

    20 Things Your Business Still Doesn’t Get About Hyperlocal Marketing

    0 shares
    Share 0 Tweet 0
  • US Consumer Prices up 0.1% in January; Gasoline Prices Fall

    0 shares
    Share 0 Tweet 0
  • Spain Disputes Tech Show Was Canceled for Health Motives

    0 shares
    Share 0 Tweet 0
  • 5 Reasons Your Local SEO Company Isn’t Providing Results

    0 shares
    Share 0 Tweet 0
  • Why Hyperlocal Advertising Works So Well for Local Businesses

    0 shares
    Share 0 Tweet 0
Business News

Citof.com is a collection of innovative and powerful news brands that deliver compelling, Push the latest news, videos, and photos on finance, industry trends, money, and more.

Follow us on social media:

Recent News

  • 20 Things Your Business Still Doesn’t Get About Hyperlocal Marketing
  • US Consumer Prices up 0.1% in January; Gasoline Prices Fall
  • 5 Reasons Your Local SEO Company Isn’t Providing Results

Category

  • Business Ideas
  • Business Trends
  • Marketing Strategies
  • Personal Finance
  • Stock Market

Recent News

20 Things Your Business Still Doesn’t Get About Hyperlocal Marketing

20 Things Your Business Still Doesn’t Get About Hyperlocal Marketing

February 21, 2020
US Consumer Prices up 0.1% in January; Gasoline Prices Fall

US Consumer Prices up 0.1% in January; Gasoline Prices Fall

February 21, 2020
  • Home
  • Advertise
  • Privacy Policy
  • Contact Us

© 2020 Small Business News. All rights reserved

No Result
View All Result
  • Home
  • Personal Finance
  • Business Trends
  • Business Ideas
  • Stock Market
  • Marketing Strategies

© 2020 Small Business News. All rights reserved

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In