Saudi Aramco won't move markets

Most index-fund owners won't notice a difference

Tom Lauricella 13 December, 2019 | 1:42AM

Saudi Aramco sign

The initial public offering for Saudi Aramco (2222), Saudi Arabia’s state-owned oil company, shattered the global record for an IPO, raising more than US$25 billion and valuing the company at US$1.7 trillion.

With a stock offering this significant, there is a knock-on effect for open-end index funds and exchange-traded funds, which will need to buy shares as it is included in underlying benchmarks.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Saudi Arabian Oil Co33.00 SAR0.00

About Author

Tom Lauricella  Tom Lauricella is Editor for Morningstar Direct, the firm’s cloud-based investment analysis platform.

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