By Maha El Dahan
DUBAI (Reuters) – Saudi Arabia placed more than half of a sale of Aramco shares worth $11.2 billion to foreign investors, two people with knowledge of the matter told Reuters on Saturday.
Riyadh has tried to attract international funds to invest tens of billions of dollars in diversification projects that move it away from its dependence on oil.
“There were multiple orders from the United States, the United Kingdom, Hong Kong and Japan,” one of the sources said.
International demand for the secondary share sale was higher than for Aramco’s IPO in 2019, the sources had previously told Reuters.
Aramco said on Friday the shares were priced at 27.25 riyals ($7.27) after the company set a price range of 26.70-29.00 riyals.
The secondary offering, codenamed Project Bond by the banks involved, has taken months of planning. As a result of the operation, more than 120 new international investors will join Aramco, one of the sources said.
“Global supply demand exceeded $65 billion between leading international institutions and domestic retail supply,” he added.
Saudi Crown Prince Mohammed bin Salman’s Vision 2030 plan finances projects as diverse as electric vehicles and the construction of futuristic cities in the desert, mainly through his Public Investment Fund.
Analysts say proceeds from the share sale are likely to go into the investment fund, although the funds could also help cover the kingdom’s budget deficit, which has widened as the price of oil has weakened.
(Reporting by Maha El Dahan; Editing in Spanish by Javier Leira)
