Following a secondary share offering anticipated to amass roughly $11.2 billion, shares of Saudi Aramco experienced a 1.06 percent increase on June 9, concluding the day at SR28.60 ($7.63) after an initial opening at SR27.95. This development occurred on the inaugural trading day subsequent to the new issue of shares.
The secondary share sale was finalized at SR27.25 per share, situated at the lower spectrum of the proposed price bracket.
Subsequent to the offering’s conclusion, international investors acquired 0.73 percent of the total shares, indicating their growing stake in the company.
The majority of the shares forming the institutional tranche of the offering was distributed to investors outside of the Kingdom,
Aramco revealed in a press release. This allocation included 0.89 percent to national institutional investors and 0.76 percent to individual retail investors.
Sources informed that nearly 60 percent of the offering was allocated to international investors, highlighting the significant foreign interest in Aramco.
Institutional investors, comprising international and national entities, acquired shares through the initial public offering or subsequent open market purchases, as stated by Aramco. Retail investors include individuals and high-net-worth entities who have procured shares similarly.
Approximately 97.62 percent of the issued shares remain under the ownership of other shareholders, including the Saudi government and various insiders such as executives and directors, as well as 163 million treasury-held shares.
Aramco’s strategy aims to fortify its global standing as a foremost integrated energy and chemicals company, enhancing its oil production, broadening its gas output, and intertwining its operations to ensure demand for its crude.
The company strives to bolster the resilience and strategic integration of its refining and chemicals portfolios to maximize value across the hydrocarbon chain and balance its fuel and chemical production.
Additionally, Merrill Lynch Co. Saudi Arabia has announced pre-stabilization activities concerning Aramco’s secondary share offering, with intentions to manage price stabilization as per Tadawul’s instructions for IPOs.
Earlier in June, Aramco embarked on a sale of shares exceeding $10 billion, marking its second public offering since the record-setting $25.6 billion IPO in December 2019.