Aramco to offer shares worth over $10 bln on Saudi bourse
RIYADH
Oil giant Saudi Aramco has said it plans to sell 1.545 billion shares worth more than $10 billion, one of the biggest such offerings in recent years.
In a statement posted to the Saudi stock exchange, Aramco announced a "secondary public offering of 1.545 billion shares," with an expected price range between 26.70 and 29 Saudi riyals ($7 to $7.70).
The sale on the local bourse, which represents approximately 0.64 percent of the company's issued shares, will commence on June 2, Aramco said.
It is the firm's second listing after an initial public offering in December 2019 that raised $25.6 billion, the biggest flotation in history.
Aramco's profits are financing Crown Prince Mohammed bin Salman's sweeping economic and social reform programme known as Vision 2030, which aims to lay the groundwork for an eventual post-oil future.
Flagship projects include NEOM, the futuristic mega-city being built in the desert at a cost of $500 billion dollars, a giant airport in Riyadh and major tourism and leisure developments.
"The further listing of Aramco will help the government raise funds for Vision 2030 projects that aim to diversify the kingdom's economy," said Amena Bakr, senior research analyst at Energy Intelligence, predicting that more shares will be listed in the coming years.
In January, Aramco said it had been instructed to abandon a plan to increase production capacity to 13 million barrels per day, up from its current level of 12 million bpd.
Analysts said the surprise announcement could reflect a lack of confidence in demand, although Energy Minister Prince Abdulaziz bin Salman said it was motivated by the transition to cleaner fuels.
