LONDON: SABIC has struck a deal to develop plastics for use as tank armor as the Saudi petrochemicals giant seeks to add more higher-value products to its range.
The Riyadh-based company struck license agreements with Military Industries Corporation for armor-level material technology and with Saudi Arabian Amiantit for trackpad rubber formulation.
“The two agreements will not only support domestic producers in manufacturing world-class armor and trackpad material but also help in creating jobs and building a competitive local workforce,” SABIC said in a statement on Thursday.
“The agreements, which follow SABIC’s commitment to contribute in localizing technologies and industries in line with the Kingdom’s Vision 2030, strengthen the collaboration between the private and public sectors in the field of military defense.”
SABIC is rapidly expanding its operations and targeting higher- value plastics as it taps into rising global demand.
Saudi Aramco this year agreed to acquire SABIC in a $69.1 billion deal that will see the Saudi national oil company further boost its downstream business.
Saudi Aramco shares soar at maximum 10% on market debut
Company is now world’s largest publicly traded company, bigger than Apple
Updated 11 December 2019
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: