The shares of the Saudi Arabian Oil Company, better known as Saudi Aramco, dipped to the lowest ever on Wednesday since its IPO on December 11.
The oil company's shares opened 0.87% lower at $9.08 (SAR 34.05) as Iran launched more than a dozen ballistic missiles at Iraqi airbases hosting U.S. troops a few hours earlier.
This is a 3.3% drop from the $9.39 that the shares opened on the first day of trading on December 11. Aramco's shares are still trading above the initial public offering price of $8.53.
Why It Matters
Oil prices worldwide remain uplifted as heightened tensions in the Middle East region threaten supply shortage.
Aramco's location and the fact that it is owned by the Saudi Arabian government has made investors wary, as Iran considers the country to be foremost among its regional enemies.
The state-owned oil company raised $25.6 billion in what was the world's largest IPO in history, ahead of Alibaba Group Holdings Ltd. (NYSE: BABA) 2014 IPO. Aramco's shares reached as high as $10.13 in the first week of trading, taking the company's valuation past the touted $2 billion.
At press time, Aramco's valuation stood at $1.8 billion, ahead of the $1.7 billion it was valued at during the IPO.