Kingdom implements mega projects worth SR288bn

Updated 11 December 2013

Kingdom implements mega projects worth SR288bn

Saudi Arabia is implementing mega infrastructure projects, including roads, bridges and rail projects worth $77 billion (SR288.75 billion), local media said quoting a report.
The projects currently implemented to develop roads and bridges in the GCC countries are estimated at $109 billion (SR408.75 billion), the report released by Ventures Middle East said.
Saudi Arabia captured the five biggest construction projects (contracts) in the Middle East region during August 2013.
The Saudi Electricity Company (SEC) recently awarded a $3.3 billion contract to South Korea’s Hyundai Heavy Industries to build Shaqiq power plant at the capacity of 2,640 megawatt (MW), located 580 km south of Jeddah, the report added.
Last month, the Ministry of Housing approved eight contracts worth $1 billion (SR375 billion) for the construction of housing projects in a number of cities, including Madinah, Jeddah, Dammam, Qatif, and Kharj, the report said.
Likewise, the Higher Commission for Riyadh Development (HCRD) also signed contracts valued at more than $22 billion for a Riyadh metro project, which is the biggest in the region. Contractors plan to build a 176 km long metro line in a five-year period, it said.
Plans are under way to build new petrochemical projects with their values touching $70 billion. Saudi Arabian Oil Company (Saudi Aramco), Saudi Basic Industries Corporation (SABIC) and Farabi Petrochemical Company (Farabi) will lead investments in these projects, the report said quoting petrochemical sources.
The petrochemical projects will be constructed near the oil refineries to get their required feedstock. They will be located in Jazan, Yanbu and Ras Tanura, the report said.
The Kingdom also recently kicked off major industrial and petrochemical projects in Jubail and Yanbu industrial cities with costs reaching SR327 billion.
The projects are supposed to raise the Kingdom’s share to global petrochemical market to more than 12 percent and its petrochemical products to nearly 100 million tons annually, the report said.


Saudi Aramco shares soar at maximum 10% on market debut

Updated 11 December 2019

Saudi Aramco shares soar at maximum 10% on market debut

  • Company is now world’s largest publicly traded company, bigger than Apple

RIYADH: Saudi Aramco shares opened at 35.2 riyals ($9.39) on Wednesday at the Kingdom’s stock exchange, 10 percent above their IPO price of 32 riyals, in their first day of trading following a record $26.5 billion initial public offering.
Aramco has earlier priced its IPO at 32 riyals ($8.53) per share, the high end of the target range, surpassing the $25 billion raised by Chinese retail giant Alibaba in its 2014 Wall Street debut.
Aramco’s earlier indicative debut price was seen at 35.2 riyals, 10 per cent above IPO price, raising the company’s valuation to $1.88 trillion, Refintiv data showed.
At that price, Aramco is world’s most valuable listed company. That’s more than the top five oil companies – Exxon Mobil, Total, Royal Dutch Shell, Chevron and BP – combined.
“Today Aramco will become the largest listed company in the world and (Tadawul) among the top ten global financial markets,” Sarah Al-Suhaimi, chairwoman of the Saudi Arabian stock exchange, said during a ceremony marking the oil giant’s first day of trading.
“Aramco today is the largest integrated oil and gas company in the world. Before Saudi Arabia was the only shareholder of the company, now there are 5 million shareholders including citizens, residents and investors,” said Yasir Al-Rumayyan, the managing director and chief executive of the Saudi Public Investment Fund.
“Aramco’s IPO will enhance the company’s governance and strengthen its standards.”
Amin Nasser, the president and CEO of Saudi Aramco, meanwhile thanked the new shareholders for their confidence and trust of the oil company.
The sale of 1.5 percent of the firm, or three billion shares, is the bedrock of Crown Prince Mohammed bin Salman’s ambitious strategy to overhaul the oil-reliant economy.
Riyadh’s Tadawul stock exchange earlier said it will hold an opening auction for Aramco shares for an hour from 9:30 a.m. followed by continuous trading, with price changes limited to plus or minus 10 percent.

The company said Friday it could exercise a “greenshoe” option, selling additional shares to bring the total raised up to $29.4 billion.
The market launch puts the oil behemoth’s value at $1.7 trillion, far ahead of other firms in the trillion-dollar club, including Apple and Microsoft.
Two-thirds of the shares were offered to institutional investors. Saudi government bodies accounted for 13.2 percent of the institutional tranche, investing around $2.3 billion, according to lead IPO manager Samba Capital.
The IPO is a crucial part of Prince Mohammed’s plan to wean the economy away from oil by pumping funds into megaprojects and non-energy industries such as tourism and entertainment.
Watch the video marking Aramco’s opening trading: