Maha El Dahan
DUBAI (Reuters) – Saudi Arabia has placed more than half of its $11.2 billion sale of Aramco (TADAWUL:) shares to foreign investors, two people familiar with the matter told Reuters on Saturday.
Saudi Arabia is seeking to attract international investment to pour tens of billions of dollars into projects to diversify its economy away from oil dependence. However, foreign investment has repeatedly failed to achieve its target.
“There have been several orders from the US, UK, Hong Kong and Japan,” one of the sources said.
International demand for the secondary share sale was higher than for Aramco’s IPO in 2019, sources previously told Reuters.
On Friday, Aramco said shares were priced at 27.25 riyals ($7.27) after the company set a price range of 26.70-29.00 riyals.
The secondary offering, code-named Project Bond by the participating banks, took several months to plan.
The deal will bring more than 120 new international investors to Aramco, one of the sources said.
“Total supply demand has exceeded $65 billion across global blue chip institutions and domestic retail supply,” he said.
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman’s Vision 2030, is funding projects as diverse as electric cars and the construction of futuristic desert cities, largely through his Public Investment Fund (PIF).
The $925 billion sovereign wealth fund, after winding down some of its flagship giant projects, is keen to focus on promoting the concept.
Proceeds from the share sale will likely be funneled into the PIF, although the funds could also help plug the kingdom’s budget deficit, which has widened due to falling oil prices, sources and analysts said.