Saudi Aramco’s gigantic initial public offering could trigger a return by retail investors to the Riyadh stock exchange as individuals snap up shares in the world’s most profitable company, reported Bloomberg.
The oil behemoth said over the weekend in its offering prospectus that as much as 0.5 per cent of the stock will be allocated to individual investors, while leaving potential buyers in the dark about the size of the stake it plans to sell and the pricing range. Some locals have been selling part of their equity portfolios recently to raise cash for Saudi Aramco stock.
Foreigners, on the other hand, have been steady buyers, followed by local institutional funds. This stemmed mostly from the Kingdom’s promotion to major emerging-market equity benchmarks, which triggered passive buying by global funds.