(BFM Bourse) – Saudi Arabia plans to sell part of the capital of the oil giant, with a view to raising more than 11 billion dollars on the Riyadh Stock Exchange.
Saudi Arabia’s oil giant Saudi Aramco announced the price of its second public offering on Friday, allowing it to raise $11.2 billion (10.3 billion euros).
The price was set at 27.25 rials ($7.27) per share, at the low end of the range, according to the company’s press release.
The jewel of the Saudi economy, largely state-owned, announced last week the sale on the Riyadh Stock Exchange of 1.545 billion shares, or around 0.64% of the total, at a price between 26.70 and 29 Saudi rials ($7 to $7.70).
The Gulf monarchy floated 1.5% of Saudi Aramco on the Saudi Stock Exchange in December 2019, raising $25.6 billion in the largest IPO in history.
This new operation reflects the strategy of Crown Prince Mohammed bin Salman, the de facto leader of the kingdom who wants to take advantage of the country’s immense oil wealth to finance his ambitious reform program, Vision 2030.
First quotations planned for Sunday
Around 10% of the shares were offered to individuals, with the rest going to institutional investors. “The offer to individuals was fully subscribed and received a total of 1,331,915 subscribers,” the press release said.
Trading of this new tranche of shares should begin on Sunday. Saudi Aramco shares closed Thursday’s session – the last day of the week in the kingdom – at 28.30 rials ($7.50), valuing the company at around $1,830 billion, compared to 1,760 at the price of the new offer. .
The press release published Friday does not specify the share of demand coming from foreign investors. Saudi Arabia, the world’s largest oil producer, is struggling to attract the investments needed to reduce its economy’s dependence on hydrocarbons.
(With AFP)
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