Founded in 1933, Saudi Aramco is the owner of one of the world’s largest oil reservoirs, containing 260 billion barrels — that’s more than ten times the entire United States’ crude oil stockpile. In addition, Aramco has a natural gas reservoir of 186 trillion cubic feet, making it the largest integrated oil and gas company in the world, ahead of other international oil companies.
The Saudi Aramco IPO
While reports of the company going public on the financial market have been present for quite some time, in early November, Saudi Arabia’s market regulator officially announced that Aramco will hold a domestic listing on the Riyadh Stock Exchange. As with all IPOs, Saudi Aramco enlisted several major banks to serve as underwriters for the offering. Among these banks are major names, such as Goldman Sachs, and the Bank of America.
It is estimated that the company will raise at least $25.6 billion, giving it a minimal market cap of $1.6 trillion. The market cap instantly positions it as one of the world’s largest publicly-traded companies and the largest of the national oil companies.
Following the domestic listing in Saudi Arabia, the company is reportedly planning additional offerings in 2020 on the New York, London, Hong Kong, and SingSaudi Aramco. Witnessing that the world’s largest energy provider, biggest oil producer, and the largest investor-owned oil company is going public is expected to be seen as the largest initial public offering (IPO) in history.
The IPO date is set for December 4th, 2019. Saudi Aramco will be available for trading on eToro once proper liquidity is provided. Until then, you can add it to your watchlist. Once the market opens, it will be traded like any other market on eToro. Aramco is hoping to raise more than $25 billion as part of the IPO, overtaking the previous record set by Alibaba in 2014.
What is Aramco?
Saudi Aramco is a government-owned crude oil production company, which is estimated to be worth as much as $2 trillion. Almost twice as much as Apple or Microsoft’s market cap, Aramco is also the most profitable company in the world. Earnings reached $111 billion in net income in 2018. That’s as much as Apple, Google and Exxon Mobile earned, combined.
What Impacts the Saudi Aramco Stock?
As one of the biggest oil groups in the world, the Saudi Aramco chart could be impacted by various factors. For example, global demand for oil could have a tremendous impact on the SAOC share price, since it will most likely be impacted by changes in oil prices.
Oil is a major part of the global economy, so international political happenings, such as trade agreements, conflicts, and the like, could also generate volatility for the Saudi Aramco stock.
Trading Saudi Aramco on eToro
If you would like to take part in this historic event, online trading platform eToro will be one of the first in the world to enable its clients to invest in Saudi Aramco stocks. On eToro, the SAOC stock will be available via Contract for Difference (CFD), which means you will be able to utilize, leverage, and carry out short orders.
eToro is a pioneering trading and investment platform, leading many groundbreaking innovations in the Fintech revolution. It is a multi-asset platform, offering more than 2,000 financial assets across various categories, such as stocks, cryptocurrencies, commodities, indices and more.
The platform prides itself on its social features, such as its patented CopyTrader™ system, which enables traders to allocate some of their funds to replicate another trader’s actions in real-time. eToro has a strong global presence, with more than 10 million users in 140 countries.
The trading platform also places great emphasis on localization, offering trading and investment services in 21 languages.
To trade Saudi Aramco, open an eToro account for free and fund it. Note that when you open an account with eToro, you also receive a virtual account with $100,000, enabling you to experiment with the platform before making your first deposit.
The eToro platform is accessible both on the web and as a mobile app, which interacts seamlessly with one another.