Saudi Aramco announces end of share sale worth $11.2B

Saudi Aramco announces end of share sale worth $11.2B

/ 07:04 AM June 12, 2024

RIYADH, Saudi Arabia — Oil giant Saudi Aramco on Tuesday announced the close of its secondary share sale that fetched $11.2 billion and attracted new foreign investors.

The offering was the largest in the Middle East since Aramco’s initial public offering (IPO) in 2019, the firm said in a statement, providing a boost to Saudi Arabia’s finances amid an expensive economic reform drive.

“This landmark transaction achieves the goals of diversifying and broadening Aramco’s shareholder base with strong participation from new international and local investors, further supporting the liquidity of our shares,” Aramco chief executive Amin Nasser said in the statement.

Article continues after this advertisement

Aramco, the mostly state-owned jewel of the Saudi economy, announced on May 30 that it would sell 1.545 billion shares, or about 0.64 percent of its issued shares, on the Saudi stock exchange.

FEATURED STORIES

READ: Saudi Aramco says foreigners grab ‘majority’ of share offering

It was widely seen as a test of foreign investor interest more than halfway through the kingdom’s campaign known as Vision 2030, whose ambitions are reflected in so-called giga-projects such as NEOM, a planned futuristic megacity in the desert.

Article continues after this advertisement

‘Greenshoe’ option

Sources close to the situation told AFP about 58 percent of shares were allocated to international investors, up from about 23 percent for the IPO in 2019.

Article continues after this advertisement

Proceeds from the deal could ultimately climb to $12.35 billion if Merrill Lynch Kingdom of Saudi Arabia, the stabilizing manager, uses an over-allotment or “greenshoe” option to sell additional shares, which it has until July 9 to do, Aramco said on Tuesday.

Article continues after this advertisement

READ: New Saudi Aramco share offering to raise $11.2B for reforms

Saudi Arabia is the world’s largest crude oil exporter and the government’s stake in Aramco is around 81.5 percent after the second share sale.

Article continues after this advertisement

The kingdom’s sovereign wealth fund, the Public Investment Fund, and its subsidiaries control about 16 percent of the firm.

Aramco reported record profits in 2022 after Russia’s invasion of Ukraine sent oil prices soaring, allowing Saudi Arabia to record its first budget surplus in nearly a decade.

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our daily newsletter

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

However, the Saudi cash cow saw its profits drop by a quarter last year because of lower oil prices and production cuts.

TAGS: Saudi Aramco, share sale

Your subscription could not be saved. Please try again.
Your subscription has been successful.

Subscribe to our newsletter!

By providing an email address. I agree to the Terms of Use and acknowledge that I have read the Privacy Policy.

© Copyright 1997-2024 INQUIRER.net | All Rights Reserved

This is an information message

We use cookies to enhance your experience. By continuing, you agree to our use of cookies. Learn more here.