Saudi Arabia Raises $11.2 Billion with Aramco Share Sale
In a bold move to fund its spending plans, Saudi Arabia is set to raise over $11.2 billion by selling shares in oil giant Aramco. The company announced that the stock has been priced at SR27.25 ($7.27) per share.
Aramco’s Public Offering Details
Aramco revealed that the secondary public offering consists of 1.545 billion shares, representing approximately 0.64 percent of the company’s issued shares. The final offer price for both institutional and retail investors was set at SR27.25 per share, determined through the book-building process.
Allocation Breakdown
Retail investors were guaranteed a minimum allocation of 10 shares per subscriber, with the remaining shares distributed on a pro-rata basis at an average allocation factor of about 25.13 percent. The retail offering was fully subscribed, attracting 1,331,915 subscribers.
Investor Distribution
10 percent of the offer shares will be allocated to retail investors, with the remaining 90 percent going to institutional investors. The government has granted the stabilizing manager a “greenshoe” option to cover short positions resulting from any over-allotments.
Important Dates
The over-allotment option is exercisable until 30 calendar days after trading of the offer shares on the Saudi Exchange begins, expected on June 9, and will cease on July 9. If fully exercised, the offering will comprise approximately 0.70 percent of the company’s issued shares.
Aramco’s Strategic Goals
Aramco aims to strengthen its global position by maintaining oil production, expanding gas production capacity, and integrating upstream and downstream operations. The company is enhancing the resilience and strategic integration of its refining and chemicals portfolios to capture more value across the hydrocarbon value chain.