Saudi Aramco Shares Soar After Secondary Share Offering
On June 9, Saudi Aramco’s shares opened higher following a secondary share offering that aimed to raise around $11.2 billion. The shares started trading at SR27.95 ($7.45) each, rising from the previous session’s closing price of SR28.3 to SR28.35 by 10:30 am Saudi time.
International Investors Take Interest in Aramco
The final price for the secondary share sale was set at SR27.25, with international investors now holding 0.73 percent of total shares. The majority of the institutional tranche was allocated to investors outside of Saudi Arabia, showcasing global interest in the company.
Diverse Share Allocation Strategy
In addition to the international allocation, Aramco allocated 0.89 percent of shares to domestic institutional investors and 0.76 percent to retail investors. Around 60 percent of the latest share offering went to international investors, demonstrating a diverse investor base.
Strategic Vision of Aramco
Aramco’s strategic vision focuses on becoming the world’s leading integrated energy and chemicals company. The company aims to strengthen its global position by maintaining oil production, expanding gas production capacity, and integrating upstream and downstream operations.
Continued Growth and Resilience
To capture more value across the hydrocarbon value chain, Aramco is enhancing the resilience and strategic integration of its refining and chemicals portfolios. The company seeks to improve the balance of its fuels and chemicals production to secure demand for its crude oil.
Merrill Lynch Co. Saudi Arabia Supports Aramco Offering
Merrill Lynch Co. Saudi Arabia has announced pre-stabilization activities related to the secondary offering of Aramco shares. Acting as the stabilizing manager, the firm aims to stabilize the offer in accordance with price stabilization mechanisms in IPOs.
Successful Secondary Offering
In June, Aramco initiated the sale of shares worth over $10 billion in its second public offering, following the record-breaking $25.6 billion IPO in December 2019. The company’s strategic initiatives and global investor interest position it for continued growth and success in the energy sector.