Saudi Aramco share price sharply drops below its initial public offering

Saudi Oil Company (Aramco) share price has dropped below its initial public offering, Arab News reported on Monday. The share tumbled 9.1 percent, its sharpest percentage fall in a day, to 30 Saudi riyals (8 U.S. dollars). The stock traded below its initial public offering price of 32 riyals for the first time.

Stock markets in the Middle East fell sharply on Sunday, with Saudi Arabia's index hitting a more than three-year low, after the Organization of the Petroleum Exporting Countries' (OPEC) pact with Russia to curb oil output fell apart on Friday, the newspaper reported.

A three-year pact between OPEC and Russia ended in acrimony after Moscow refused to support deeper oil cuts to cope with the outbreak of coronavirus and OPEC responded by removing all limits on its own production.

Aramco succeeded at the end of 2019 to price its long-awaited initial public offering at the high end of the target range, raising 25.6 billion dollars and giving the energy giant a valuation of 1.7 trillion dollars in the world's biggest stock sale.