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Aramco Sells Shares worth $12 Billion within Hours of IPO


Mon 03 Jun 2024 | 05:46 AM
A person passes by a logo for Saudi Aramco Source: Bloomberg
A person passes by a logo for Saudi Aramco Source: Bloomberg
Taarek Refaat

Saudi Aramco was able to sell shares worth $12 billion shortly after the stock initial public offering earlier, Sunday, in a grant to the government that is seeking funds to help it pay the costs of its massive economic transformation plan.

The government received demand for all the shares offered within a few hours after the IPO opened. The subscription was covered in a price range between 26.70 riyals and 29 riyals.

The stock price fell 2.9% to 28.30 riyals on Sunday, valuing Aramco at about $1.8 trillion. The stock had fallen by approximately 14% at the beginning of this year, after reports about the government’s intention to sell a stake in the company. The stock is currently trading at its lowest levels in more than a year.

The company's record $29.4 billion initial public offering in 2019 attracted orders of $106 billion. As for the latest share sale, attention will turn to foreign investors who largely rejected valuation expectations during the initial listing, leaving the Saudi government to rely on local buyers.