Oil giant Saudi Aramco announced on Sunday that foreign investors had snapped up the majority of the shares sold in its most recent offering, which was expected to raise $11.2 billion.
As part of a reform drive to prepare for a potential post-oil future, the kingdom is building large-scale projects like stadiums and resorts, so the secondary offering was expected to boost Saudi Arabia’s finances temporarily.
Before the Saudi stock exchange reopened on Sunday, the company released a statement stating that most of the shares that made up the institutional tranche of the offering were allotted to investors not based in the kingdom.
Aramco’s market capitalization is approximately $1.85 trillion as of Sunday’s closing price of 28.60 Saudi riyals ($7.63) per share, following an opening price of 27.95 riyals.
According to sources, approximately 58% of the company’s shares were allotted to foreign investors. This represents a significant increase from roughly 23% of the shares during the company’s historic initial public offering in 2019.
According to the sources, about 70% of orders placed outside the local market originated in the US and the EU, with smaller percentages coming from Australia, Hong Kong, Japan, and Hong Kong.
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