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Another hit for Saudi Aramco

Business
05.01.2020
65
Another hit for Saudi Aramco

Saudi Arabia’s national oil company Saudi Aramco lost almost 2% of its total value at auction in Riyadh on January 5. This happened due to the difficult geopolitical situation in the Persian Gulf. Namely, because of the assassination of General Qasem Soleimani, which was committed by Donald Trump’s order.

Shares of the company fell for 1.7% to 34.55 rial (slightly more expensive than $9) per share. Since the last IPO on December 11, 2019, this is the lowest share price.

Besides killing the general, this is not the first situation that puts the company at risk. In September, the organisation was attacked from the air, thereby it was necessary to temporarily suspend the sale and production of oil. Tehran was initially suspected of a missile attack, but a little later, a group from Yemen admitted their guilt for what happened.

Just a month later, the company returned to its previous level of oil production, which amounted to 9.9 barrels per day. Due to the weakening of geopolitical tensions and control by the state, Saudi Aramco for the first time in a long time entered an IPO, the results of which reached a capitalization of $2 trillion. As a result the company raised $25.5 billion.

During the company’s IPO, investors implied a possible danger due to tense geopolitics, but the assassination of General Soleimani occurred a real blow to the market.

Author:Елена
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