There was lot of discussions on valuation of ARAMCO. Finally, it was declared that valuation of ARAMCO will be US$ 1.71 trillion which means approximately SR 6.4125 trillion or SR 6412.5 billion. Aramco initially planned to sell 5% of total shares but later decided to offer1.5% of outstanding shares thru Tadawul.
The IPO being offered to all citizens and legible expatriates at retail price SR 32.00 per share. This will be easiest way to buy Aramco shares on line sitting at home. If you have the bank account then bank has all your information. You need to fill simple form mentioning how many shares you want to buy. The system will automatically calculate how much money you need to pay. You must have that much money in your account. The bank will deduct the amount from your balance. Minimum quantity is 10 shares and then it’s multiple. The bank sources indicated to Al-Arabia (English) that IPO has already fetched US$ 17.1 billion from institutional buyers while retail sales has collected SR 10 billion (US$ 2.66 billion) till Thursday. The retail sales will be over on 28th November while Institutional sales will continue till 4th December. The final price to shareholders will be revealed on 5th December.
The positive stance prevailed in Tadawul. Tadawul All Share Index (TASI) fluctuated within the range of 191 points and finally ended with rise of 138.42 points on WoW basis and closed at 8062.61. Due to increase of prices the Market Capitalization was up by SR 26.9 billion.
The most active scrip of the week was Saudi Fransi Bank in which shares worth SR 2.25 billion were traded and that was 14.25 % of total weekly trade value. However, the share price of Saudi Fransi bank dropped by 2.16% and finished at SR 34.00. Banking sector again was in lime light due to expectation of extra profit from Armaco IPO. Most active scrip in Banking sector were All-Rajhi Bank and Alinma Bank in which SR 2.03 billion and SR 1.20 billion were invested and both shares were amplified by 4.68% and 4.26% respectively. SABIC was up by 1.51% and closed at SR 94.10.
However, the biggest gainer of the week was Enaya Insurance. As per announcement the accumulated losses of Enaya Insurance amounted to 41.56% of the Capital. As per financial results LPS decreased from SR 4.98 (1-9 2018) to SR 2.72 (1-9, 2019). It is not favorable situation but the investors chose for investment on speculation and the price augmented by 11.76% and closed at SR 11.40. The 2nd biggest gainer was Savola Group. As per announcement Savola Group Net Profit jumped by 5941% from SR 5.6 million (1-9, 2018) to SR 338.3 million (1-9, 2019). This was promising situation to invest. The share price increased by 7.69% to SR 32.90. CMA has allowed Axa Insurance to increase the Capital by 10% which will be done thru issuance of 10% of Bonus shares. It will take place within 6 months and Book closing date will be announced later. The price of Axa improved by 7.37% and ended at SR 26.95. In Energy sector the price of National Shipping enhanced by 6.28% and ended at SR 33.00. However, in the same sector Petro Rabigh was down by 2.56% and closed at SR 19.82.
In negative list Al-Kathiri was on the top. The price of this scrip has gone up by nearly 99% during the last 2 weeks. Therefore, it was correction time. The price plummeted by 8.62% and closed at SR 131.40. The price of Jadaco dived by 7.93% and closed ended at SR 10.22. Raydan Food Co, engaged in food, catering and restaurant services (Famous for Laham Mandi), has recently being transferred from Parallel market to Main Market. Their authorized capital is SR 225 million. They announced 9th Months financial results; Their Sales was up by 1.14% from SR 177.1 million (1-9, 2018) to SR 179.1 million (1-9, 2019) however net profit was down drastically by 70.1% from SR 18.02 million (1-9, 2018) to SR 5.3 million (1-9, 2019). The reason for decrease in profit is due to increase in operating cost, selling and marketing expenses, and increase in financial cost. The profit figures are also down due to implementation of IFRS-16 which was not present in 2018. EPS of 9 months down from SR 0.8 to SR 0.24. Its price depressed by 6.68% on WoW basis and closed at SR 20.68. Al-Othaim Markets after becoming ex-dividend, was down by 2.13% and closed at SR 78.00
Advanced Petrochemical Co has completely redeemed its SR 1 billion Sukuk on 17.11.2019. It means that their financial cost will reduce. The value of Advanced Petrochemical was slightly up by 0.21% and ended a SR 47.50.
Al-Samaani Factory for Metal Industries (Listed in Parallel Market) announced 9th months Financial Results. Their profit of 3212 Million (1-9, 2018) has turned to loss of SR 367 million (1-9, 2019). EPS from SR 2.40 turned to LPS of SR 0.24. They however announced to increase the Capital by issuing 66.67% Bonus shares. Their price increased by 25.5% to SR 81.60.
ARAMCO IPO and Oil prices will keep up the momentum in Saudi Stock Market. The oil price has gone up by 2.55% on W/W basis.
SOURCE : ALBILAD
