Saudi Aramco is set to raise $11.2 billion in its latest offering
OIL & GAS

Saudi Aramco is set to raise $11.2 billion in its latest offering

The oil giant Saudi Aramco announced that the majority of the shares sold in its most recent sale, which was expected to raise $11.2 billion, had been snapped up by foreign investors. As part of a reform effort to get ready for a future without oil, the Gulf state is building large-scale projects like stadiums and resorts; thus, the secondary offering was expected to give Saudi Arabia's finances a temporary boost. Most of the shares that made up the offering's institutional tranche were allotted to investors who weren't based in the Kingdom. After beginning at SAR 27.95 per share, Aramco closed trading on Sunday at $7.63, giving it a market capitalization of almost $1.85 trillion. The company's initial public offering (IPO) in 2019 was the largest flotation in history, with around 23% of shares going to foreign investors. However, sources close to the issue informed AFP that over 58% of shares were allotted to foreign investors. According to the individuals, who spoke under anonymity to discuss sensitive information, almost 70% of orders placed outside of the local market originated in the US and the EU, with further orders coming from Australia, Japan, and Hong Kong. The crown jewel of the Saudi economy, Aramco, which is primarily held by the state, declared on May 30 that it will list $1.545 billion worth of shares, or around 0.64% of all shares it has issued, for sale on the Saudi stock exchange. More than halfway through the kingdom's Vision 2030 campaign, whose goals are mirrored in so-called giga projects like NEOM, a projected futuristic megacity in the desert, it was largely perceived as a test of interest for international investors. Aramco stated on Friday that the price of its secondary offering will be 27.25 Saudi riyals per share, which is the lower end of the 26.70 to 29 Saudi riyals range that was disclosed on May 30. Ellen Wald, a senior fellow at the Atlantic Council and author of a history of Aramco, stated that it came as no surprise that eligible traders were interested in purchasing shares, particularly after observing the consistent dividend payments irrespective of the company's earnings. She mentioned that Saudi Arabia, being the world's largest crude oil exporter, held approximately 81.5% of the government's stake in Aramco after the second share sale. Additionally, she noted that the kingdom's sovereign wealth fund, the Public Investment Fund, and its subsidiaries controlled approximately 16% of the firm. Wald further explained that Aramco had reported record profits in 2022 following the surge in oil prices triggered by Russia's invasion of Ukraine, enabling Saudi Arabia to achieve its first budget surplus in nearly a decade. However, she pointed out that the company's profits had declined by a quarter the previous year due to lower oil prices and production cuts.

The oil giant Saudi Aramco announced that the majority of the shares sold in its most recent sale, which was expected to raise $11.2 billion, had been snapped up by foreign investors. As part of a reform effort to get ready for a future without oil, the Gulf state is building large-scale projects like stadiums and resorts; thus, the secondary offering was expected to give Saudi Arabia's finances a temporary boost. Most of the shares that made up the offering's institutional tranche were allotted to investors who weren't based in the Kingdom. After beginning at SAR 27.95 per share, Aramco closed trading on Sunday at $7.63, giving it a market capitalization of almost $1.85 trillion. The company's initial public offering (IPO) in 2019 was the largest flotation in history, with around 23% of shares going to foreign investors. However, sources close to the issue informed AFP that over 58% of shares were allotted to foreign investors. According to the individuals, who spoke under anonymity to discuss sensitive information, almost 70% of orders placed outside of the local market originated in the US and the EU, with further orders coming from Australia, Japan, and Hong Kong. The crown jewel of the Saudi economy, Aramco, which is primarily held by the state, declared on May 30 that it will list $1.545 billion worth of shares, or around 0.64% of all shares it has issued, for sale on the Saudi stock exchange. More than halfway through the kingdom's Vision 2030 campaign, whose goals are mirrored in so-called giga projects like NEOM, a projected futuristic megacity in the desert, it was largely perceived as a test of interest for international investors. Aramco stated on Friday that the price of its secondary offering will be 27.25 Saudi riyals per share, which is the lower end of the 26.70 to 29 Saudi riyals range that was disclosed on May 30. Ellen Wald, a senior fellow at the Atlantic Council and author of a history of Aramco, stated that it came as no surprise that eligible traders were interested in purchasing shares, particularly after observing the consistent dividend payments irrespective of the company's earnings. She mentioned that Saudi Arabia, being the world's largest crude oil exporter, held approximately 81.5% of the government's stake in Aramco after the second share sale. Additionally, she noted that the kingdom's sovereign wealth fund, the Public Investment Fund, and its subsidiaries controlled approximately 16% of the firm. Wald further explained that Aramco had reported record profits in 2022 following the surge in oil prices triggered by Russia's invasion of Ukraine, enabling Saudi Arabia to achieve its first budget surplus in nearly a decade. However, she pointed out that the company's profits had declined by a quarter the previous year due to lower oil prices and production cuts.

Next Story
Real Estate

Casagrand Launches 41-Acre Highcity Project in Chennai

Casagrand has launched Casagrand Highcity, a 41-acre integrated residential development on Chennai’s Outer Ring Road (ORR), marking the company’s largest residential project to date.The project will comprise over 4,000 two and three BHK apartments across four G+22 towers and is positioned as one of the largest organised residential developments in the ORR corridor.Located along Chennai’s emerging residential and infrastructure growth belt, the project benefits from connectivity to IT hubs including Navalur, Siruseri SIPCOT and Porur, as well as industrial clusters such as Sriperumbudur, ..

Next Story
Real Estate

Brigade, Marriott Open Courtyard Kochi Infopark

Brigade Hotel Ventures (BHVL) and Marriott International have opened Courtyard by Marriott Kochi Infopark, a rebranded and upgraded hotel formerly operating as Four Points by Sheraton Kochi Infopark.Located in Kakkanad adjoining Infopark Kochi, the 218-room property strengthens Brigade’s hospitality portfolio in one of the city’s key IT and commercial corridors. The hotel is positioned to cater to corporate, MICE and leisure travellers visiting Infopark, SmartCity and other business hubs in Kochi.The property offers flexible workspaces, smart TVs and high-speed WiFi across rooms and suites..

Next Story
Real Estate

WorkEZ Expands South India Portfolio to 1.7 Mn Sq Ft

Work Easy Space Solutions (WorkEZ) has expanded its managed workspace portfolio to approximately 1.7 million sq. ft. across 12 operational buildings and two upcoming developments, strengthening its footprint across South India.The expansion includes the addition of 65,000 sq. ft. at Phoenix One National Park in Chennai and the company’s entry into Kochi through a partnership with Lulu Developers, adding another 70,000 sq. ft.WorkEZ has also signed a 0.4 million sq. ft. development in Coimbatore with Veeras Infra following the successful leasing of 0.1 million sq. ft. in the first phase. The ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement