Institutional investors launched 144.1 billion riyals ($ 38.4 billion) in anticipation of Saudi Aramco 's IPO, the equivalent of more than double the number of listed companies. shares on sale, announced Monday the financial advisors of the initial public offering.
Aramco declined to comment when ed by CNBC Thursday morning.
The company will by all means be the largest listed on the Saudi exchange, and this has sparked worry that it will weight the equity index of Tadawul excessively toward energy stocks.
The price range for Saudi Aramco has been set in between 30-32 Saudi riyals, and the kingdom is trying to raise $25 billion of funding by issuing a 1.5 percent stake to investors.More news: President Donald Trump lands in London for North Atlantic Treaty Organisation summit
"The liquidity situation in Saudi banks is strong despite Aramco's IPO, and it is now under our watch since the first day of Aramco's IPO, but in the meantime we are interested in the volume of loans that went out and are closely monitoring the banks", Kholifey added.
The move is part of a broader reform Tadawul index methodology, including the revision of the methodology of calculation of free float shares shares owned by government entities.
Tadawul said it had also applied a new "Fast Entry" rule allowing shares of IPOs to be included in the all-share index at the close of their fifth trading day.
Aramco has received $44.3 billion in bids so far from institutional and retail investors for the IPO, lead manager Samba Capital said last week. Retail subscriptions ended on November 28 while institutional investors have until Wednesday to submit their orders.More news: Arsenal keeper Leno reveals Ljungberg reaction during Norwich draw
This agreement is the centerpiece of Crown Prince Mohammed bin Salman's plans to diversify the Saudi economy away from oil.
The OPEC source told media that "There is a discussion about a deeper cut taking place" and cited forecasts for "a big stock build in the first half of the year - we need to keep an eye on that".
As Opec's de facto leader, Saudi Arabia is expected to use its position to push other members to tighten their compliance with the group's agreed oil production limits, while cutting its own output even further than it needs to.More news: European Union regulators to investigate how Google and Facebook handle user data