Saudi Arabia to raise $11 billion in Aramco share sale
SUMMARY
Saudi Arabia is set to raise over $11.2 billion by selling shares in oil giant Aramco, pricing the stock at 27.25 riyals ($7.27) per share, at the lower end of the anticipated range. The offering was highly subscribed, with strong international interest, particularly from Asia and Europe. The funds from this sale are expected to support the Public Investment Fund and potentially address the kingdom's budget deficit, as oil prices remain below the necessary $96.2 per barrel to balance Saudi Arabia's budget. The sale, dubbed Project Bond, involves selling a 0.64% stake in Aramco, potentially increasing to 0.7% with a greenshoe option, which could raise approximately $12.36 billion. The shares will start trading on Riyadh's Saudi Exchange on Sunday.
