Aramco’s inclusion on MSCI Index could attract around SAR 8 bln: Aljazira Cap

Saudi Aramco’s potential inclusion on the MSCI Equity Index from December 17 onward is expected to attract between SAR 6.6 and SAR 8.1 billion from passive funds, Aljazira Capital noted in a report.

The brokerage firm said that Saudi Aramco’s inclusion on TASI would significantly increase the Saudi benchmark index’s market cap.

It added that after inclusion of Saudi Aramco, Saudi Arabia’s weightage in the MSCI EM Index could cross 3%, making it comparable to countries such as Mexico, Russia and South Africa.

The brokerage further noted that Saudi Aramco’s inclusion on TASI would lead to TASI outperforming other developing countries based on various parameters related to profitability and shareholder returns.

The report noted that Saudi Aramco’s listing with a price of SAR 32 per share, which values the company at SAR 6.4 trillion ($1.7 trillion) is expected to have float adjusted weight of 9.6% to 10.9% in TASI.

State-owned Saudi Aramco starts trading on the Saudi Stock Exchange (Tadawul) today with the symbol 2222.

For more details about Saudi Aramco IPO