Saudi Aramco Seek Loyalty from IPO Buyers in $2-T Offer


Saudi Aramco is exploring ways to reward loyal investors in its IPO (initial public offering) to ensure the record share sale is not followed by a wave of selling.

One way that Aramco has discussed with Saudi regulators is whether it could offer bonus shares to retail stock buyers who keep their holdings for 6 months.

Aramco is looking to reduce market volatility after it begins trading as well as provide a benefit to retail buyers who expect a windfall from local listings.

Aramco faces a delicate balance as it seeks to push its IPO valuation as close as possible to $2-T a figure that’s been met with skepticism from many professional investors, while making sure it’s attractive to potential Saudi buyers. It is planning to rely more on local funds after mixed feedback from international money managers forced the company to delay the offer’s market open.

Aramco is considering making a formal announcement of the listing plan as soon as the next few weeks as it pushes to complete the listing this year.

Thursday, the major US stock market indexes finished at: Dow -28.42 at 26805.53, Nasdaq +66.00 at 8185.80, S&P +5.77 at 3010.29.

Volume: Trade on the NYSE came in at 806-M/shares exchanged

The indices closed mixed with the tech-sensitive Nasdaq Composite (+0.8%) rising above its peers in an earnings-driven advance. The S&P 500 (+0.2%), DJIA(-0.1%), and Russell 2000 (-0.2%) finished near their unchanged marks. 

  • NAS Comp+23.4% YTD
  • S&P 500 +20.1% YTD
  • Russell 2000 +15.0% YTD
  • DJIA +14.9% YTD

HeffX-LTN’ overall technical outlook for the major US stock market indexes is Neutral to Bullish in here.

Stay tuned…