Saudi Arabia announces new Aramco share sale

DHAHRAN, May 31, 2024 – Saudi Arabia’s government and Saudi Aramco have launched a secondary public offering of ordinary shares of the company that will commence on June 2, 2024, the entities said in a joint statement on Thursday.

The offering comprises about 1.545 billion shares of Aramco representing approximately 0.64% of the company’s issued shares. At an expected pricing of between SAR 26.70 and SAR 29.00 (USD 7.12 and USS 7.73) per share, the offering could raise around USD 12 billion.

Shares will be offered to institutional investors in Saudi Arabia, qualified institutional investors outside Saudi Arabia and eligible retail investors in Saudi Arabia and the GCC. 154.5 million shares, or 10% of the total, will be allocated to retail investors, subject to there being sufficient demand.

“The offering provides us with an opportunity to broaden the shareholder base amongst both Saudi and international investors,” said Aramco CEO Amin Nasser, according to Reuters. “It also offers us an opportunity to increase liquidity and to increase our global index weighting,”

Net proceeds from the offering will go to the government. Aramco will not receive any proceeds beyond reimbursement of costs and expenses incurred in the IPO, and the offering will not result in any dilution of the shares of the other shareholders of the company.

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