Saudi Arabia’s government invested more than $2 billion in Aramco’s record-shattering IPO “” even though the nation swore to become more economically diverse

Saudi Arabia’s government invested more than $2 billion in Aramco’s record-shattering IPO “” even though the nation swore to become more economically diverse

Saudi Arabia's government institutions spent nearly $2.3 billion on Saudi Aramco's record-breaking initial public offering, Bloomberg reported Tuesday.

That reliance on local funding sources contrasts with Aramco's expressed desire to get more economically diverse.

The government sold two-thirds of shares to institutional investors, and government institutions bought up 13.2% of those shares.

Saudi companies bought the largest portion of the tranche, taking 37.5% of shares offered, according to Bloomberg.

The nation plans to use funds raised by the offering to push its economy away from a reliance on oil and toward new ventures, including local investments and a new city estimated to cost $500 billion.

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Saudi Arabia's government institutions poured nearly $2.3 billion into Saudi Aramco's record-breaking initial public offering, Bloomberg reported Tuesday. That reliance on local funding sources contrasts with Aramco's expressed desire to get more economically diverse.

The government offered two-thirds of the floated shares to institutional investors, and government institutions bought up 13.2% of that amount, Bloomberg reported, citing the deal manager Samba Capital. Foreign investors were offered 23.1% of the institutional sale.

Saudi companies took the largest stake in the institutional sale, buying up 37.5% of those shares. Public and private funds took 26.3% of the