Saudi Arabia’s offer of a sliver of Aramco that will raise as much as $12 billion ranks among the largest share sales globally since the kingdom listed the oil giant five years ago.
At the top end of the indicated price range, the deal would be the sixth-largest share sale since the firm raised $30 billion in its 2019 initial public offering. It’s also set to be the fourth biggest follow-on offering in that period.
The kingdom could raise an additional $1.2 billion if it exercises an option to sell more shares as part of the offering.
Proceeds will help fund initiatives to diversify the economy away from oil as Crown Prince Mohammed bin Salman pushes into artificial intelligence, sports, tourism and projects such as Neom.
That’s crucial at a time when crude oil prices are below levels the government needs to balance its budget. The kingdom’s also lagged behind a target of attracting more than $100 billion a year in foreign direct investment.
The latest deal has been in the works for year. MBS, as the crown prince is known, said in 2021 that the government would look to sell more Aramco shares in the future. Those plans gained momentum a year ago, when the kingdom began working with advisers to study the feasibility of a follow-on offering in Riyadh.
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