The company announced on Friday that after pricing the stock at the lower end of expectations, Saudi Arabia is set to raise more than $11.2 billion by selling shares in oil giant Aramco, which will help finance its spending plans.
Aramco shares were marketed at a price between 26.7 and 29 riyals, with the price of 27.25 riyals ($7.27) being close to the lower end of that range.
According to a person with knowledge of the situation, the offering was covered four or five times.
According to the person and two other people familiar with the matter, foreign demand for the stock was higher than anticipated and exceeded that of Aramco’s historic IPO in 2019. One of them stated that demand came from Asia, particularly China, while another claimed that the offering attracted European interest.
While agreeing to extend most production cuts until 2025, the de facto Saudi-led Organization of the Petroleum Exporting Countries (Opec) and its allies, including Russia, also outlined a comprehensive plan for eight members to unwind some voluntary cuts over a year starting in October, provided market conditions allow.
The pricing, which values Aramco at roughly $1.76 trillion, is almost 4% lower than where the company’s shares closed on Thursday.
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