Investing.com - Saudi Aramco (SE:ARAM), Saudi Arabia’s state-owned oil company, will have plenty of support when it begins trading later this week, according to analysts.
“I see further upside to the stock after listing due to the fact that investors will be chasing the stock to complete their exposure, since the deal was oversubscribed,” said Ali El Adou, head of asset management at Daman Investiments in Dubai, in a Bloomberg report.
The article pointed out that Aramco promised to pay at least $75 billion of ordinary dividends in 2020, and that dividend will not fall until after 2024. That sustainability will provide support to the company’s stocks, Bloomberg said.
The state-owned oil giant set its IPO at 32 riyals ($8.52) per share, which is the top of its indicative range. The stocks will be listed on the Tadawul, Saudi Arabia’s local stock exchange and will begin to trade on Dec. 12