International investors dominate Saudi Aramco's latest offering, signalling global confidence in the oil giant amid Saudi Arabia's diversification efforts.
Aramco announced on May 30 that it would sell 1.545 billion shares, or approximately 0.64 percent of its issued shares, on the Saudi stock exchange. / Photo: Reuters Archive
"The majority of the shares constituting the institutional tranche of the Offering was allocated to investors located outside of the Kingdom," the company said in a statement on Sunday before the Saudi bourse reopened.that around 58 percent of shares were allocated to international investors, up from around 23 percent for the company's initial public offering in 2019, which was the biggest flotation in history.
It was widely seen as a test of foreign investor interest more than halfway through the kingdom's campaign known as Vision 2030, whose ambitions are reflected in so-called giga-projects such as NEOM, a planned futuristic megacity in the desert. About 10 percent of the shares were offered to retail investors, drawing 1.3 million subscribers, Aramco said on Friday.that retail coverage was 3.7 times and that total demand from institutional and retail investors was worth over $65 billion.
Aramco announced last year it would start paying a performance-based dividend in addition to its base dividend. Saudi Arabia is the world's largest crude oil exporter and the government's stake in Aramco is around 81.5 percent a fter the second share sale.
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