More than half of Aramco’s $11.2 billion share sale has been allocated to foreign investors, according to insiders.
Saudi Arabia aims to attract international investments to support its economic diversification efforts. Despite these efforts, foreign investment has often fallen short of its objectives.
“Orders came from the US, UK, Hong Kong and Japan,” a source revealed.
International interest in this secondary share sale exceeded the demand seen during Aramco’s initial public offering in 2019, insiders previously indicated.
On Friday, Aramco announced that the shares were priced at 27.25 rials ($7.27), following an established price range of 26.70 to 29.00 rials.
The secondary offering, called Project Bond by the banks involved, required extensive planning over several months.
This transaction is expected to attract more than 120 new international investors to Aramco, a source added.
“Total demand for the offering exceeded $65 billion from blue-chip global institutions and domestic retail investors,” the source said.
Crown Prince Mohammed bin Salman’s Vision 2030 initiative aims to finance various projects, from electric vehicles to futuristic desert cities, mainly through the Public Investment Fund (PIF).
Valued at $925 billion, the sovereign wealth fund has scaled back some of its major projects to focus on driving the vision more effectively.
Proceeds from the share sale are expected to go to the PIF, although they could also be used to address the kingdom’s budget deficit, which has widened due to falling oil prices, according to sources and analysts.
Also read: Meet Keith Gill: The Influencer Behind GameStop’s New Stock Surge