Saudi Aramco shares fell 10% on Monday after Saudi Arabia lowered its official crude oil sales prices and planned a significant increase in oil production next month, leading to a sharp drop in prices.
Aramco's shares traded at 27 riyals ($7.20), 15.6% lower than the initial public offering price of SAR 32, which pushed the company's Value in December to $1.7 trillion in the world's largest IPO.
Aramco fell below the IPO price on Sunday for the first time since trading began in December, Saudi shares fell 9.11%, while International Bonds issued by Saudi Arabia and Aramco fell. Also, Aramco's 2049 bonds fell by more than 8 cents, and the oil giant's 2029 bonds fell 4.5 cents.
Saudi government bonds due in 2049 fell by more than 9 cents, while bonds outstanding in 2029 fell by 3.5 cents.
Benchmark Brent crude fell by a third after Riyadh's move after Russia rejected another sharp cut in OPEC's proposed production to stabilize oil markets affected by concerns about the impact of the Coronavirus.
Aramco's shares rose to a one-day high of SAR 38.70 on its second trading day, but have since declined due to concerns about valuation, which kept international funds away from participating in the IPO.
Aramco, which is scheduled to announce its 2019 profit on March 16, is expected to post a net profit of SAR 347.6 billion ($92.6 billion) in 2019, according to an average estimate of 15 analysts surveyed by Refinitiv, up from $111.1 billion in 2018.