Saudi Aramco stock up 10% opening day . . . . for now

[Jabbar + 465]

Saudis issued 1.5% of Aramco equity.  With 1% to institutions and .5% to retail.

Saudi institutions and couple foreign institutions (UAE , Kuwait , etc) are not going to sell.  

The retail investors were offered 1 extra share  for every ten they own if they don't sell for 6 months.  

It's reported that the Saudi Sovereign Wealth Fund was buying on the open to run the stock up.  Great, the Sovereign Wealth Fund sold the shares slotted in the IPO .   .   .   Now they buy the shares back to promote this scam.  

WITH NO REAL SELLERS EASY TO MANIPULATE THE STOCK AND "PAINT" THE TAPE.

Only matter of time before stock drops 35% to reasonable $1.2 trillion valuation.

Only on the Saudi Tadawul exchange could they ever get away with this.  

Saudi prop up Aramco share price the same way they the do the oil price.  Both will eventually find their proper level .  .  .  .  .   .   .   LOWER

Due to Kingdom's control over stock probably can keep the stock price up for st least 6 months.  

It's like a game of MUSICAL CHAIRS . . . . who gets stuck with the shares when the music stops ?  Actually, who cares . . . just a bunch of Saudi Princes living off their stipends.

Smoke & Mirrors

 

Edited December 11, 2019 by Jabbar

[Tom Kirkman + 8,860]

1 hour ago, Jabbar said:

Saudis issued 1.5% of Aramco equity.  With 1% to institutions and .5% to retail.

Saudi institutions and couple foreign institutions (UAE , Kuwait , etc) are not going to sell.  

The retail investors were offered 1 extra share  for every ten they own if they don't sell for 6 months.  

It's reported that the Saudi Sovereign Wealth Fund was buying on the open to run the stock up.  Great, the Sovereign Wealth Fund sold the shares slotted in the IPO .   .   .   Now they buy the shares back to promote this scam.  

WITH NO REAL SELLERS EASY TO MANIPULATE THE STOCK AND "PAINT" THE TAPE.

Only matter of time before stock drops 35% to reasonable $1.2 trillion valuation.

Only on the Saudi Tadawul exchange could they ever get away with this.  

Saudi prop up Aramco share price the same way they the do the oil price.  Both will eventually find their proper level .  .  .  .  .   .   .   LOWER

Smoke & Mirrors

 

^ well said

[Tom Kirkman + 8,860]

Crash eventually.  

Aramco Stock Soars Limit Up In Debut After Saudis Force Locals To Buy

Aramco only sold a tiny 1.5% sliver in the company, meaning that the kingdom and Public Investment Fund of Saudi Arabia (PIF) could easily manipulate the price with such a small fraction of the stock public. Aramco listed on the Tadawul exchange because of other international exchanges and their investors found it hard to value the oil company near the $2 trillion levels. 

"They have had to launch the IPO on their own stock exchange as the valuation was unlikely to be achieved elsewhere," said John Colley, associate dean at Warwick Business School in the U.K, who spoke with Reuters. 

 

... Sustainability of the Aramco IPO is questionable considering international participation is weak, and the kingdom not only forced domestic buyers to load up as much as they could but also were told to use leverage. 

Macroeconomic headwinds of a slowing global economy, dropping Chinese demand and declining fuel consumption across the world could put down pressure on oil prices heading into the new year, but none of that matters because the kingdom has orchestrated one of the most significant one day stock pumps the country or maybe the world has ever seen.