Saudi Arabia has secured more than half of an $11.2 billion share sale in Aramco (2222.SE) from foreign investors, according to two sources familiar with the matter who spoke to Reuters on Saturday.
The kingdom has been striving to attract international investments to fund various projects aimed at reducing its dependency on oil.
However, foreign investment has consistently fallen short of targets.
“There were multiple orders from the U.S., UK, Hong Kong, and Japan,” one source disclosed.
International interest in this secondary share sale exceeded the demand witnessed during Aramco’s IPO in 2019, sources had previously informed Reuters.
On Friday, Aramco announced that shares were priced at 27.25 riyals ($7.27), following the company’s initial price range of 26.70-29.00 riyals.
The secondary offering, named Project Bond by the banks involved, was the culmination of months of meticulous planning.
As a result of this transaction, more than 120 new international investors will join Aramco, one source noted.
“The overall demand for the offering was greater than $65 billion across global blue-chip institutions and the domestic retail offering,” he said.
Crown Prince Mohammed bin Salman’s Vision 2030, which funds initiatives from electric vehicles to building futuristic cities in the desert through the Public Investment Fund (PIF), is at the heart of these efforts.
The $925 billion sovereign fund, despite scaling back some flagship giga-projects, is now focusing more sharply on advancing the vision.
Proceeds from this share sale are expected to be directed towards the PIF, as suggested by sources and analysts.
These funds could also potentially address the kingdom’s growing budget deficit, exacerbated by falling oil prices.