LNG Journal editor
Shares in Saudi Aramco, the oil company of Saudi Arabia, surged in their debut on the Saudi Tadawul stock exchange, reaching a 10 percent daily limit for the company that has expressed interests in LNG trading and investment.
Aramco shares traded at 35.20 Saudi riyals ($9.40) for the first day high after debuting at 32 riyals in the sale of 1.5 percent of the company's shares.
The first day share price brought Saudi Aramco's value up to $1.88 trillion.
The $25.6 billion initial public offering became the biggest in history and made it the world's most valuable company.
The value of Aramco is more than the top five energy majors, ExxonMobil, Royal Dutch Shell, Chevron, Total and BP.
The IPO has been targeted at Saudi nationals as well as some strategic investors, though investment bankers failed to draw in international buyers.
Saudi Aramco plans to be a supplier and trader of LNG and with its first customer expected to be Bangladesh.
It has recently issued an expression of interest to charter up to 12 LNG carriers from 2025, through its shipping subsidiary, Bahri.
The Bahri shipping business comprises 90 vessels delivering oil and chemicals and dry-bulk cargoes.
It includes more than 40 very large crude carriers, 35 chemical-product tankers as well as other specialized ships.
Saudi Aramco and ACWA Power also signed a $3 billion deal in October 2019 with Bangladesh Power Development Board to develop a 3,600-megawatt LNG-based power plant and terminal in the country.
While the announcement of that deal did not specify who would supply the LNG Aramco has confirmed its intention to become an LNG trader.