Saudi Arabia is selling $12 billion worth of shares in its national oil company, Saudi Aramco, to raise funds for its sovereign wealth fund.
The government will sell at least 1.545 billion shares, or 0.64%, between 26.7 and 29 Saudi Riyals. An option to sell an additional 154.5 million shares could bring in another $1 billion.
Saudi Aramco CEO Amin Nasser said the sale, which was decided by the government, aims to expand the company’s international investor base.
The offering will run from June 2 to June 6. Despite Aramco’s share price falling to 29 Saudi Riyals, Nasser emphasised that the current pricing is not a discount compared to the 2019 IPO.
The sale aligns with Saudi Arabia’s ongoing economic diversification efforts and coincides with an OPEC meeting. Proceeds will benefit the Public Investment Fund, the kingdom’s main investment vehicle. The PIF aims to increase its assets to $1 trillion by 2025.