KSA: Saudi Aramco IPO institutional tranche more than twice oversubscribed

Russia seeks to postpone OPEC decision on oil output curb

Saudi Arabia wants OPEC+ to deepen oil cuts due to Aramco IPO

The new measures would "ensure a more balanced index, which accurately represents the movement of the market, increasing disclosure and transparency and minimize the dominance of securities", said Tadawul CEO Khalid Al Hassan in a statement.

At a time institutional investors are racing to win a stake in the Saudi Aramco IPO, considered the largest offering witnessed by global markets, the Saudi Arabian Monetary Agency (SAMA) said yesterday that the financial situation of banks in the Kingdom is very reassuring in terms of liquidity and lending rates.

"Retail subscriptions, which concluded last night, reached 47,411,624,960 Saudi riyals" (RM52.8 billion), with almost five million subscribers for nearly 1.5 billion shares, Friday's statement said.

Aramco is expected to announce the initial price of shares for the world's most profitable company from Riyadh on the same day that Opec talks take place in Vienna.

Tadawul said it had also applied a new "Fast Entry" rule allowing shares of IPOs to be included in the all-share index at the close of their fifth trading day.

In the first update on institutional investor interest in the listing, Samba said it had received bids from them worth 118.86 billion riyal ($31.70 billion). The retail investment ended yesterday, but institutional investors still can purchase shares up to next week.

The current deal runs to March.

This agreement is the centerpiece of Crown Prince Mohammed bin Salman's plans to diversify the Saudi economy away from oil.

Another two sources said the latest OPEC analysis, drawn up by OPEC's Economic Commission Board (ECB), showed a large oversupply and build up in inventories in the first half of 2020, if no additional cuts were made.

Brent futures rose 19 cents, or 0.3%, to $61.11 a barrel by 0218 GMT, after gaining 0.7% on Monday.

The IPO will be priced on December 5, the same day OPEC meets in Vienna.

As Opec's de facto leader, Saudi Arabia is expected to use its position to push other members to tighten their compliance with the group's agreed oil production limits, while cutting its own output even further than it needs to.

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