KSA ‘perfect place for Japanese investment’

Updated 20 May 2014

KSA ‘perfect place for Japanese investment’

Crown Prince Salman, deputy premier and minister of defense, held talks with Japanese Defense Minister Itsunori Onodera and Economy, Trade and Industry Minister Toshimitsu Motegi covering a wide range of topics in Tokyo on Thursday.
The meeting reviewed bilateral relations and cooperation and matters of mutual interests. Motegi and the crown prince stressed the strong economic relations between the Kingdom and Japan. Motegi said that such visits would further strengthen the two-way relations.
During his meeting with Arab ambassadors, Crown Prince Salman commended the distinguished relations between Riyadh and Tokyo.
The crown prince was given a presentation titled Invest in Saudi Arabia made by SAGIA Gov. Abdullatif Al-Othman.
The presentation spelled out the various reasons for investing in strategic sectors where the Kingdom enjoyed comparative advantages.
Saudi Arabia is at the heart of the Middle East and North Africa (MENA) region that has a 400 million-strong population.
One of the world’s 20 largest economies, and No. 1 in the MENA region, Saudi Arabia ranks 22nd among 185 countries identified for conducting business with ease, according to the International Finance Corporation and World Bank’s ‘Doing Business’ report in 2013.
Saudi Arabia is also the largest free market in the Middle East, accounting for 25 percent of the total Arab GDP, the largest oil reserves worldwide (25 percent) and the lowest energy prices for investment projects.
Thus, Saudi Arabia is an ideal destination for projects that are dependent on energy.
Saudi Ambassador to Japan Abdulaziz bin Abdulsattar Turkistani hosted a dinner banquet in honor of the crown prince.


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: