Saudi Aramco’s weight on TASI stands at 9.7%: official

Saudi Aramco’s weight on Tadawul All-Share Index (TASI) stood at 9.7% based on a price of SAR 32 and an offering ratio of 1.725%, taking into account the stocks allocated for the initial public offering (IPO) stabilizing manager, Nayef Al-Athel, Director of Listing at Saudi Stock Exchange (Tadawul), told Argaam in an exclusive.

Tadawul updated its indices methodology for the development and management of Tadawul equity indices.

It reviewed free float shares calculation methodology, fast inclusion to Tadawul main market index (TASI), capped indices calculation and maintenance, the exchange said in a statement.

In addition, an index capping was applied for TASI with a threshold of 15%.

In case Saudi Aramco’s weight hits 15%, the maximum limit will be applied.

Al-Athel said the stabilizing manager maintains the stock price after listing. It also purchases the stock in case of decline. However, the stabilizing manager does not take any action when the stock rises.

“The stock rise serves the interests of the company and investors. The purchase option will be exercisable the stabilizing manager at any time on or before 30 calendar days. The stabilizing manager is required to disclose any purchase to the public after every five trading sessions,” Al-Athel added.

The price stabilization mechanism was successfully implemented in the IPO of Arabian Centers Co., the top official concluded.

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