Saudi Prince’s $2 Trillion Aramco Vision Fades on Oil-Price War

Bookmark

(Bloomberg) -- Saudi Aramco’s worst day since December’s record-breaking IPO is shattering the government’s $2 trillion valuation for the state-oil company.

The shares tumbled almost 10% on Sunday, meaning more than $400 billion of market value has been wiped out in about three months. Saudi Arabia started an oil-price war on Saturday after OPEC+ talks collapsed.

Aramco, the world’s biggest oil producer, reached the Saudi crown prince’s envisioned $2 trillion valuation on Dec. 16, just days after the IPO. The valuation was a point of contention and led to the offering being a largely domestic affair.

Sunday’s plunge mirrored Gulf indexes, many of which lost more than 5%.

Saudi Prince’s $2 Trillion Aramco Vision Fades on Oil-Price War

©2020 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.