Saudi Aramco’s shares increased on Sunday, marking the first trading day following a secondary share offering anticipated to generate at least $11.2B.
The shares commenced trading at SAR 27.95 each, having concluded the prior session on Thursday at SAR 28.3. However, they advanced to SAR 28.35 by 0730 GMT. The final price for the secondary share sale was established at SAR 27.25, positioned towards the lower end of the specified price range.
According to two individuals familiar with the matter who spoke to Reuters on Saturday, Saudi Arabia allocated over half of the Aramco share sale to foreign investors. One source mentioned that numerous orders originated from the US, the UK, Hong Kong, and Japan.
As the world’s leading oil exporter, Saudi Arabia has endeavored to attract international investment to allocate tens of billions of dollars into ventures diversifying away from oil dependency. However, foreign investment has consistently fallen short of expectations.
The kingdom’s Vision 2030 initiative encompasses various undertakings, ranging from electric vehicles to the construction of futuristic cities in the desert, primarily facilitated through the Public Investment Fund (PIF).
The $925B sovereign fund, having scaled back some of its flagship giga-projects, aims to refine its focus to advance the vision.
Sources and analysts anticipate that proceeds from the share sale will likely be directed to the PIF, although funds could also assist in offsetting the kingdom’s budget deficit, which has widened due to declining oil prices.
