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

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

Saudi Arabian government institutions spent nearly $2.3 billion on Saudi Aramco's record-breaking IPO, 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 the stake.

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 Arabian government institutions sank 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 shares floated to institutional investors, and government institutions bought up 13.2% of the stake, Bloomberg reported, citing 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 shares. Public and private funds took 26.3% of the institutional offering, Bloomberg reported.

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