Saudi Aramco raised a total of $12.35 billion from selling more shares after increasing its offering by another 154.5 million shares via Merrill Lynch, a stabilization manager on the deal. The success of the initial share listing and the additional proceeds that Aramco will raise with contribute further to fueling Saudi Arabia’s ambitions to invest in new industries and diversify its economy away from oil in line with its Vision 2030.
Aramco raises additional $1 billion
By exercising the greenshoe option, Aramco raised an additional $1 billion which will allow banks to place more stock when there is demand from investors.
Last month, Saudi Aramco sold 0.64 percent of its shares or about 1.545 billion shares for $7 to $7.70 per share. Since its offering last month, the company’s shares have increased by around 3.3 percent, trading at 28.10 riyals as of 9:32 GMT.
In a document from Merrill Lynch, the investment manager revealed that it exercised the over-allotment option and that the month-long stabilization period ended with no such transactions undertaken.
The share offering comes after Aramco made its record-setting IPO in 2019, which raised $29.4 billion. The secondary public offering of Aramco’s ordinary shares commenced on Sunday, June 2, 2024, a previous Aramco statement added.
Read: Saudi Aramco starts issuing U.S. dollar-denominated bonds
Propelling Vision 2023 forward
Saudi Arabia’s government is a majority shareholder in Aramco and heavily relies on the oil company to finance its diversification efforts under Vision 2030. In 2016, the government launched the diversification program, which aims to invest in the non-oil sector to diversify the economy away from dependence on oil.
Despite the recent declines in oil prices, Aramco has expanded its investments in refineries and petrochemical projects in China and other countries. Moreover, the company expanded its retail and trading businesses and focused more on gas with its first venture into liquefied natural gas last year. Aramco currently produces about nine million barrels of oil per day, about 75 percent of its maximum capacity, in line with its OPEC+ commitment to cutting output.
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