KSA Bags $12.35 Billion from Aramco's Share Sale
This includes an additional 154 million shares available through a greenshoe option, managed by Merrill Lynch to stabilize prices.
Saudi Arabia has raised $12.35 billion from a secondary offering of a 0.64% stake in Aramco, priced at SAR27.25 ($7.42) per share. This includes an additional 154 million shares available through a greenshoe option, managed by Merrill Lynch to stabilize prices.[1]
The sale marks a significant step in Saudi Arabia's efforts to diversify its economy under Vision 2030, following Aramco's record-setting IPO in 2019.
In parallel, Aramco has returned to the debt market with plans to issue bonds maturing in 10, 30, and 40 years, aiming to raise at least $3 billion across these tranches.[2]
Aramco's second offering will help the oil giant gain access to more than 120 international investors, making it well-connected all over the world.
Moelis & Co. and M. Klein & Co. acted as independent financial advisers.
The lead manager was SNB Capital. It also acted as a joint global coordinator along with Citigroup Inc., Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Bank of America Corp., and Morgan Stanley.
Al Rajhi Capital, BOC International, BNP Paribas SA, China International Capital Corp., EFG Hermes, Riyad Capital, Saudi Fransi Capital, and UBS were the bookrunners.
During Aramco's 2019 IPO, global investors mainly balked at valuation estimates, leaving the government reliant on domestic buyers. The $29.4 billion IPO received $106 billion in orders, with international purchasers receiving approximately 23% of the shares.
In May, Saudi Arabia announced that it was planning a multi-billion-dollar share sale in the energy giant Aramco.