Oil giant Saudi Aramco announced on Sunday that international investors had purchased the majority of shares in its latest offering, which is projected to raise $11.2 billion. “The majority of the shares constituting the institutional tranche of the offering were allocated to investors located outside of the Kingdom,” the company stated ahead of the shares’ commencement of trading on the Saudi stock exchange on Sunday.
Sources familiar with the matter told AFP that approximately 58 percent of the shares were allocated to international investors, a significant increase from the 23 percent allocated during the company’s record-breaking initial public offering in 2019. The sources, who spoke on condition of anonymity, revealed that about 70 percent of the foreign orders originated from the European Union and the United States, with additional interest from Japan, Hong Kong, and Australia.
On May 30, Aramco, which is primarily state-owned and a cornerstone of the Saudi economy, announced its plan to sell 1.545 billion shares, equivalent to approximately 0.64 percent of its total issued shares, on the Saudi stock exchange. This secondary offering is expected to provide a short-term financial boost for Saudi Arabia as the nation undertakes significant projects, including resorts and stadiums, as part of its ambitious economic reforms.
The share offering is also seen as a critical gauge of foreign investor interest in Saudi Arabia’s ongoing economic transformation, known as Vision 2030. This reform initiative includes mega-projects like NEOM, a futuristic city planned in the desert.
Saudi Arabia, the world’s largest crude oil exporter, retains a government stake of around 81.5 percent in Aramco following this latest share sale. On Friday, Aramco set the offering price at 27.25 Saudi riyals ($7.27) per share, at the lower end of the previously announced range of 26.70 to 29 Saudi riyals. The company’s shares closed at 28.30 Saudi riyals per share on Thursday, valuing the company at approximately $1.83 trillion.
