#Saudi Aramco’s $12 Billion Offer Said to Draw Strong Foreign Demand - Bloomberg

Saudi Aramco’s $12 Billion Offer Said to Draw Strong Foreign Demand - Bloomberg

Foreign investors have flocked to Saudi Aramco’s $12 billion share sale, people familiar with the matter said, marking a turnaround from the oil giant’s 2019 listing that ended up as a largely local affair.

The deal attracted significant interest from foreign investors, according to the people, who declined be identified as the information is private. It wasn’t immediately clear exactly how much demand came from overseas, but those investors put in enough bids to more than fully cover the offering, the people said.

Apart from Western institutions, demand for the offer was also strong among Asian investors, one of the people said, signaling the kingdom’s growing ties with larger Asian economies like China and India. Locally, too, there’s been strong interest.

The demand indicates that, for some investors, the world’s largest oil company has become a more attractive stock to hold despite rising concerns about climate change and the energy transition. Aramco’s huge dividend, coupled with a massive investment plan in renewable power, petrochemicals, gas and the opportunity to buy the stock at a discount, have drawn in investors.

Institutional investors can submit orders until Thursday for the deal, which was covered in just a few hours after it opened on Sunday. The extent of foreign participation will be closely watched — Saudi Aramco’s top executives held a series of events in the UK and the US this week to drum up demand.