Saudi Arabia’s main equity index advanced the most in more than a year after the pricing of Saudi Aramco’s initial public offering and amid hopes of higher oil prices.
The Tadawul All Share Index rose 2.4%, the most for a session since October 2018. The kingdom raised $25.6 billion from the world’s biggest IPO after selling shares at 32 riyals ($8.53) each. That was the top end of the range and values the energy company at $1.7 trillion. It received total bids of $119 billion. Aramco shares will start trading in Riyadh on Wednesday.
Saudi Arabia said it will cut oil supply by more than what was agreed with fellow Opec+ members, as it guns for a $2 trillion valuation for Aramco. Oil prices climbed following the announcement.
“Saudis are giving thumbs up to Aramco,” said Joice Mathew, the head of equity research at United Securities in Muscat. “The Opec+ deal puts a medium-term floor to the oil prices, So now the stage is set for a positive opening for Aramco.”
Al Rajhi Bank and National Commercial Bank, the kingdom’s two biggest lenders, climbed 1.6% and 3.1%, respectively. They contributed the most to the index’s