The stock market is losing .. the decline in the pace of Saudi Aramco's share, what next?

Saudi Aramco shares closed at 36.80 riyals (8.9 dollars), an increase of less than 5% in trading on Thursday, and it rose to a maximum of 38.70 riyals during the opening of the session.

The market value of the company reached two trillion dollars for a short period, before it fell during transactions below this level.

The market value of the stock rose by 10% on the first trading day yesterday, Wednesday, which is the maximum increase specified by the Saudi stock market.

As a result, the Saudi market index recorded a decline of 1.6% at about eight thousand points, amid transactions exceeding 18 billion riyals ($ 4.8 billion), giving up most of the gains achieved in the previous session.

And analysts at "Pristine" company started their coverage of the share when it rated "performance less than market performance" with a value of about one trillion and 360 billion dollars, which is less than the initial evaluation of Aramco's trillion and seven hundred billion dollars.

Analysts said that the size of the company is not everything, noting the risks of slowing net income growth in the event of stable oil prices.

On Wednesday, Aramco entered the stock market with the start of trading its shares locally at a record price, and the giant Saudi Oil Group on the first historical trading day became the largest company listed in the financial market in the world.

The public offering of a portion of Aramco's shares is the cornerstone of the economic reform program for Crown Prince Mohammed bin Salman, called "Vision 2030".

The offering was postponed several times due to the crown prince's insistence on valuing the company at $ 2 trillion.

Aramco has a capital of sixty billion Saudi riyals ($ 16 billion) divided by two hundred billion shares. Aramco sold three billion shares initially, which represents 1.5%, and then offered to sell an additional 450 million, or about 0.25%.

Aramco was expected to sell 5% of its shares in the local financial market and an unspecified foreign exchange, but it recently announced that the offering plans outside Saudi Arabia were deferred and reduced the shares offered for sale.

What then?
The authorities tried to motivate the local market to subscribe to the company before the offering, by inviting wealthy families to buy stakes, while local media outlets promoted the purchase as a national business.

The government even pumped enormous funds into the IPO by buying 13.2% of the total shares allocated to institutions at a value of $ 2.3 billion, although the goal of the sale is to collect additional funds in favor of financing major projects, according to the French Press Agency.

The Financial Times also said on Tuesday that Riyadh may have encouraged local investment funds and wealthy families to support the initial offering.

Writer George Hay said in an article published by Reuters news agency that it is possible that Aramco shares will decline once a number of factors are dissipated, including the effect of the decision of the Organization of Petroleum Exporting Countries (OPEC) to cut production to support oil prices, and the retention of individual investors who bought a third of the offered amount of shares For six months with a promise to distribute bonus shares.

The writer pointed out that local investors acquired more than three quarters of the offering after its downgrade, while most of the rest have close allies like Abu Dhabi.

He added that if the crown prince wants Aramco to be worth two trillion dollars, then these investors will be conservative in disposing of the stock. But at this level - the writer continues - the prospects for a successful sale in the future will likely diminish for foreign investors, which was one of the key points in the project.