Home » Markets » Aramco trades below IPO price for first time, after OPEC pact unravels
Aramco trades below IPO price for first time, after OPEC pact unravels
Disagreement sparked between Russia and OPEC over oil production
Fox News contributor Phil Flynn discusses OPEC’s proposed cut in oil production.
DUBAI (Reuters) – Shares of Saudi state oil company Aramco slumped below their initial public offering (IPO) price on Sunday for the first time since they began trading in December, after OPEC's pact with Russia to restrict oil supplies fell apart on Friday.
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Aramco shares were down 6.2% at 30.85 riyals ($8.22) at 0852 GMT, their sharpest percentage fall in a day, and below the IPO price of 32 riyals. The Saudi market was down 7.4%.
Aramco's record IPO in December gave it a price tag of $1.7 trillion, making it the world's most valuable company. The stock hit an intraday high of 38.70 riyals on its second day of trading, but has eased since then.
The shares have fallen more than 11% since the start of the year amid concerns the coronavirus outbreak will slow oil demand from China and hurt the global economy.
Oil prices have also slumped, and fell further on Friday after a three-year pact between OPEC and Russia aimed at supporting the market ended in acrimony when Moscow refused to back deeper production cuts. OPEC responded by removing all limits on its own production.