Saudi Aramco’s opening price likely at ±10% fluctuation limit, says Tadawul CEO
08/12/2019 Argaam Special
The extension of state-owned Saudi Aramco’s opening auction for 30 minutes on the first day of trading is considered “uninfluential”, Khalid Al-Hussan, CEO of the Saudi Stock Exchange (Tadawul), told Argaam.
“These measures are meant to give investors more time to determine the stock’s opening price based on supply and demand,” said Al-Hussan, adding that Aramco’s opening price will have a ±10% daily price fluctuation limit.
Tadawul receives orders of daily price fluctuation of +10%, but these orders will not be considered, he said.
The orders, which will be received from 9.30 – 10.30 am at a daily fluctuation limit of 10% and an offer price of SAR 32, will be taken into consideration when determining the share opening price, Al-Hussan indicated.
Orders above 10% of the offer price will be rescheduled to the day in which such a price will be at the 10% fluctuation limit, compared to the previous day closing price, Al-Hussan noted.
Saudi Aramco will start trading on the Saudi Stock Exchange (Tadawul) on Wednesday, Dec. 11, with the symbol 2222, and a daily price fluctuation limit of 10%, Argaam previously reported.