Regional

Aug. 29, 2018 | 12:08 AM

Aramco’s IPO delay brings silver lining for Riyadh-traded stocks

Bloomberg

A version of this article appeared in the print edition of The Daily Star on August 29, 2018, on page 4.

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Summary

There's a silver lining for Riyadh-traded stocks in the delay to Saudi Arabian Oil Co.'s massive initial public offering.

Saudi Arabia last week placed the share sale on hold as Aramco instead focuses on buying a stake in petrochemical maker Saudi Basic Industries Corp., or Sabic, for as much as $70 billion.

Aramco's IPO could attract as much as $11 billion from fund managers, according to EFG-Hermes estimates. Sabic, the biggest Riyadh-traded company by market capitalization, is expected to be the largest Saudi representative within MSCI and FTSE indexes, drawing about $2.9 billion to the local market, Hajj estimates.