Aramco shares were priced at 27.25 riyals ($7.27) per share, a 6% discount to its last close before the deal was announced.
Aramco's roster now includes over 120 new international investors.
Demand for the offering was greater than $65 billion across global blue chip institutions and domestic retail offering.
PIF aims to diversify the economy and invest in various sectors, including electric vehicles and futuristic cities.
Proceeds from the sale will be channeled towards Saudi Arabia's Public Investment Fund (PIF).
Saudi Arabia sold over half of its $11.2 billion Aramco share sale to foreign investors.
Saudi Arabia's Massive Aramco Share Sale: A Game Changer for Foreign Investors
Saudi Arabia has made history by allocating over half of its $11.2 billion share sale in Aramco to foreign investors, marking a significant shift from the oil giant's 2019 initial public offering (IPO) that was largely dominated by local investors.
The recent transaction saw more than 120 new international investors added to Aramco's roster. The proceeds from the share sale are expected to be channeled towards Saudi Arabia's Public Investment Fund (PIF), which is a key driver of Crown Prince Mohammed bin Salman's Vision 2030 initiative.
The PIF, with assets totaling over $925 billion, aims to diversify the economy away from its reliance on oil and invest in various sectors such as electric vehicles, futuristic cities in the desert, and other projects. The fund has already scaled back some of its flagship giga-projects to sharpen its focus.
The secondary offering of Aramco shares took months of planning and generated significant interest from international investors. According to sources, demand for the offering was greater than $65 billion across global blue chip institutions and the domestic retail offering. The share sale was priced at 27.25 riyals ($7.27) per share, which is a 6% discount to its last close before the deal was announced.
The strong demand from foreign investors in this transaction is a positive sign for Saudi Arabia's efforts to attract international investment and diversify its economy. The success of this share sale could pave the way for more such transactions in the future, further boosting investor confidence and economic growth.
Saudi Aramco's mega stock offering will raise at least $11.2 billion for Riyadh, the biggest such deal globally in about three years.
The government will sell almost 1.55 billion shares for 27.25 riyals ($7.27) apiece, which is a 6% discount to the stock’s last close before the deal was announced.
Proceeds will help fund Crown Prince Mohammed Bin Salman’s ambitious plans to revamp the economy with investments in sports, artificial intelligence, tourism and the desert project of Neom.
Aramco shares have been under pressure recently, even dropping to their lowest levels in over a year in the days leading up to the massive offer that drained liquidity from the Saudi market.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
The article contains an appeal to authority fallacy in the form of quotes from Anita Gupta and Marwan Haddad. These individuals are presented as experts in their field and their opinions are used to support the idea that Aramco is a good investment. However, this does not necessarily mean that the statement is true or accurate.
We like Aramco. It's selling at a reasonable price and we recommend it for investors as a three-year strategic investment.
Offering shares with such attractive yields is likely to attract both large institutional clients and retail investors.
