Aramco to raise up to $13bn from new share offering

Aramco to raise up to $13bn from new share offering

Saudi Aramco, the kingdom’s energy giant, confirmed on Thursday it aims to raise up to $13 billion in a secondary public offering next month, as Riyadh seeks out new sources of funding to finance its portfolio of giga-projects. The world’s largest oil producer will sell a 0.64 percent stake, or 1.545 billion shares, in an offering that […]Saudi Aramco, the kingdom’s energy giant, confirmed on Thursday it aims to raise up to $13 billion in a secondary public offering next month, as Riyadh seeks out new sources of funding to finance its portfolio of giga-projects.

The world’s largest oil producer will sell a 0.64 percent stake, or 1.545 billion shares, in an offering that will commence on Sunday.

Aramco raised $25.6 billion through its initial public offering (IPO) in December 2019, which was the “biggest IPO in history”.

The price range is expected to be between SAR26.70 and SAR29 ($7.12-7.73) per share, raising between $11 billion and $12 billion.

The value of the offering may increase to $13.1 billion at the upper limit if the “greenshoe option” is exercised. This option allows the sale of 1.7 billion shares, or a 0.7 percent stake, enabling bankers to use these shares to stabilise the offering price.

The book-building period for institutional investors