Saudi Arabia for very long has been making a lot of attempts at the manipulation of oil prices through the cartel of OPEC by making the adjustments in production and there is no astonishment when there are suggestions that the price of the shares of Saudi Aramco have been manipulated as well.
The price of shares was set at a price of 32 riyals on 5th of December which makes its value to an equivalent of $1.7 trillion. As per the asset managers all over the globe the valuation on an average was $1.26 trillion.
The stock had closed limit up on 11th of December as the trading began and registered a 10% gain. On the 12th of December the price had opened limit up once again as it reached a valuation of $2 trillion which had been claimed by the crown prince nearly four years ago. The price had softened in the trading on the second day but was up still by about 5% more.
The benefits now being in the hindsight, the plan of Saudi with this IPO is becoming a lot clearer to the ones who have been observing this IPO and are critical of it. The first step of this plan was to replace the energy minister of the country as the Chairman of Aramco. This had been done on 30th of August by a royal decree. This is at the same time when the King Salman had appointed Yasir Al Rummayan as the Board’s Chairman of Saudi Aramco.
This was important for the success of this Initial Public Offering as the companies were prepared by these two people in the interim.