Sunday, 2 June 2024

Investors flock to Aramco share sale that could raise $13 billion | Reuters

Investors flock to Aramco share sale that could raise $13 billion | Reuters

Saudi Arabia's sale of shares in oil giant Aramco (2223.SE), opens new tab drew more demand than the stock on offer within hours of kicking off on Sunday, a landmark deal that could raise up to $13.1 billion in a major test of international appetite for the kingdom's assets.

The banks on the deal will take institutional orders through Thursday and will price the shares the following day, with trading expected to start next Sunday on Riyadh's Saudi Exchange.

The offering will be a gauge of Riyadh's appeal to foreign investors, a key plank of the kingdom's ambitious plan to overhaul its economy. Foreign direct investment has repeatedly missed its targets.

The sale will also bolster efforts by the government to wean itself off its "oil addiction", as Saudi de facto ruler Crown Prince Mohammed bin Salman once called it, analysts and sources have said.

The sovereign wealth fund, the Public Investment Fund (PIF), the preferred vehicle driving the mammoth agenda that has poured tens of billions of dollars into everything from sports to futuristic desert cities, is likely to be a beneficiary of the funds, they said.

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