Strong demand for Aramco share sale

Saudi Arabia’s $12 billion sale of Aramco shares was completed within hours. Saudi Aramco’s $12 billion share sale found buyers shortly after the start of trading. According to Bloomberg, demand ranged from 26.70 riyals ($7.10) to 29 riyals ($7.73), although it was unclear how much of the demand came from foreign investors. Aramco’s record $29.4 billion IPO had attracted $106 billion worth of demand. The latest share sale had focused on foreign investors, who had largely defied valuation expectations during the 2019 IPO and left the Saudi government dependent on local buyers. The government will use the proceeds from the Aramco stake sale for Vision 2030 projects. Shares fell as much as 2.9 percent to 28.30 riyals on Sunday, bringing Aramco’s market value to $1.8 trillion. The stock has lost about 14% since the beginning of the year, when Bloomberg News first reported the government’s intention to divest the stake. The Saudi government owns about 82% of Aramco, while the kingdom’s wealth fund holds a 16% stake. The kingdom will remain the majority shareholder after the offering.