Saudi Arabia has raised over $11.2 billion from the sale of Aramco shares, the state-owned oil giant, in a secondary offering. The shares were priced at 27.25 riyals ($7.27) per share, at the lower end of the expected price range of 26.7 to 29.0 riyals.
The offering was well received, with demand covering the sale four to five times over. International investors, including from China, Asia, and Europe, showed strong interest in the share sale, which was larger than Aramco’s initial public offering in 2019.
The proceeds from the share sale are expected to be channeled to Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), to support the country’s economic diversification efforts under Crown Prince Mohammed bin Salman’s Vision 2030 plan. The plan aims to reduce the kingdom’s reliance on oil by investing in sectors like electric vehicles and futuristic cities.
The sale comes as oil prices have weakened in recent weeks, with Brent crude trading just below $80 per barrel. Saudi Arabia needs oil prices to be around $96 per barrel to balance its budget, according to the International Monetary Fund. The country is also part of the OPEC+ group, which has agreed to extend most production cuts into 2025 but will allow some members, including Saudi Arabia, to gradually unwind some voluntary cuts over the next year.