The Saudi Stock Exchange, also known as the Tadawul, in Riyadh. Image Credit: File photo

Saudi Arabia’s main equity index advanced the most in the Middle East after the pricing of Saudi Aramco’s initial public offering and amid hopes of higher oil prices.

The Tadawul All Share Index rose as much as 1.8% within the first hour of trading on Sunday. The kingdom raised $25.6 billion from the world’s biggest IPO after selling shares at 32 riyals ($8.53) each. That was the top end of the range and values the energy company at $1.7 trillion. It received total bids of $119 billion. Aramco shares will start trading in Riyadh on Wednesday. The Tadawul finished the day up 2.44 per cent.

Saudi Arabia said on Friday it will cut oil supply by more than what was agreed with fellow Opec+ members, as it guns for a $2 trillion valuation for Aramco. Oil prices climbed following the announcement.

Aramco has been “fairly valued and there is definitely some room to rally from here,” said Aarthi Chandrasekaran, a portfolio manager in Abu Dhabi at Shuaa Capital, in an interview to Bloomberg TV. And the oil cuts by the Saudis were “very well-timed,” she said.