ALBAWABA - The oil giant Saudi Aramco disclosed on Sunday that the majority of the shares sold in its most recent sale, which was projected to fetch $11.2 billion as AFP reports, had been snapped up by foreign investors from outside the kingdom.
As it works towards Saudi 2030 vision where its economy would shift away from oil, the second round of stock offering intends to provide a quick financial boost for the kingdom to support its mega-projects under development.
AFP reports citing sources close to the matter speaking under condition of anonymity that over 58 percent of the company's shares were allotted to foreign investors. This represents a significant increase from roughly 23 percent during the company's largest-ever float, which took place during its initial public offering in 2019.
Ahead of the Saudi Exchange trading hours on Sunday, the company stated that “the majority of the shares constituting the institutional tranche of the Offering was allocated to investors located outside of the Kingdom.”
AFP’s sources added that almost 70 percent of orders that were placed from outside the local market were from the United States of America and the European Union, while the remainder originated from Japan, Hong Kong, and Australia.
Saudi Arabia is the biggest crude oil supplier in the world, with the government's holding in Aramco currently standing at 81.5 percent following the second share sale. The Public Investment Fund, which is the sovereign wealth fund of the country, and its subsidiaries own approximately 16 percent of the company.
