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Saudi Aramco Raises $12.35bn from Share Sale

Saudi Aramco earned $12.35bn from selling more shares, after increasing the offering in the Saudi oil giant, reported Agence France Press (AFP).

Aramco raised $1bn more than expected from the secondary share sale, after exercising an over-allotment option.

According to Merrill Lynch Kingdom of Saudi Arabia, the deal’s stabilizing manager, Aramco issued an additional 154.5 million shares to meet investors’ demand. This makes the total number of shares about 1.7 billion.

This offering, announced in May, was the largest in the Middle East since Aramco announced the first public offering (IPO) in 2019, furthering Saudi Arabia’s ambitions to diversify its economy away from oil under Vision 2030.

In a statement, Merrill Lynch Saudi Arabia said: “Following the exercise of the over-allotment option, the total offering size will be 1,699,500,000 shares, representing a total offering amount of SAR 46.31bn ($12.35bn).”

Last month, Aramco said the offering raised a minimum of $11.2bn, with the final size depending on the use of the over-allotment or “greenshoe” option to sell more shares by July 9. The offering included the sale of 1.54 billion shares, accounting for approximately 0.64% of Aramco’s total issued shares.

On Wednesday, the IFR Income News Service announced that the Saudi Oil giant has begun selling bonds in three tranches: 10 years, 30 years, and 40 years. Aramco said in a statement on Saudi Tadawul that the value of the offering will depend on market conditions.

Moreover, Aramco in June awarded contracts, with a total value exceeding $25bn, to advance its gas expansion plans that aim to increase production by over 60% by 2030. It also signed an agreement to acquire a 10% equity interest in Renault and Geely joint venture, HORSE Powertrain.

Also in June, Aramco signed non-binding agreements to purchase liquified natural gas (LNG) from US energy firms Sempra and NextDecade for 20 years.

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