Saudi Arabia is set to raise more than $11.2 billion by selling shares in its national oil company Aramco after pricing the stock at the lower end of expectations.
The company said on Friday that approximately 1.55 billion Aramco shares would be priced at 27.25 riyals (US$7.27), at the low end of the 26.7 to 29 riyals range previously disclosed.
A person with knowledge of the matter told Reuters the offering was covered four to five times.
This source and two others told the publication that foreign demand for the share sale was stronger than expected, exceeding international demand for Aramco’s 2019 IPO.
This included interest from China and other parts of Asia and Europe, the sources said.
Some of the funding is reportedly going to be put in Saudi Arabia’s Public Investment Fund, which is backing a range of projects including electric vehicles and innovative cities in the desert.
The funds could also be used to address the nation’s likely budget deficit this year as the oil price has weakened, the sources told Reuters.