Saudi Arabia confirmed plans to sell shares in its giant oil company in a deal that could raise as much as 44.8 billion Saudi riyals ($12 billion) for the kingdom, as it seeks funds to pay for a massive economic transformation plan.
The sale of 1.545 billion shares in Saudi Aramco, or 0.64% of the company’s issued shares, will kick off June 2, according to a statement confirming an earlier report by Bloomberg News. The price range is expected to be between 26.70 and 29 Saudi riyals per share, representing as much as a 7.9% discount to the company’s closing share price on Thursday.
The deal will test global investors’ appetite for the world’s biggest oil exporter amid questions about climate change and the future of fossil fuels. The company’s massive dividend payouts will be an attraction for foreign investors, many of whom had balked at valuations of the mega initial public offer in 2019. But Aramco’s shares are expensive compared with other oil supermajors such as Exxon Mobil Corp. and Shell Plc.
Original story Saudi Arabia to Sell Aramco Stake That May Raise $10 Billion - Bloomberg
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