Aramco Share Sale Nets $12 Billion | SUSTG.com – News, Analysis, and Features on all things Saudi Arabia

This is Aramco’s second share sale after it first entered public markets in 2019 offering 1.5% of the company and raising a record $29.4 billion, history’s largest IPO to date. Aramco is the world’s largest oil company in terms of both daily crude production and market cap.

This past Sunday, June 2, Saudi Aramco (ARMCO) offered approximately 1.545B Aramco shares, or approximately 0.64% of the company, within the price range of 26.70 riyals to 29 Saudi riyals. All shares on offer sold out in a few hours after the sale was launched. It is not known yet, how much of the demand came from overseas, but the orders reflected a mix of local and foreign investors.

According to Reuters, the Saudi National Bank’s investment banking arm, was the lead manager as well as global coordinator alongside Citi, Goldman Sachs, HSBC, JPMorgan, Bank of America and Morgan Stanley. Al Rajhi Capital, Riyad Capital and Saudi Fransi are also domestic joint bookrunners. Credit Suisse Saudi Arabia – part of UBS Group – was a domestic bookrunner alongside BNP Paribas, Bank of China International and China International Capital Corporation as foreign bookrunners.

The Saudi government owns just over 82% of Aramco, with the remainder held by public investors and the Saudi Public Investment Fund (PIF).

Facts and figures about Saudi Aramco’s share listing as of June 2, 2024:

Previous close: 28.90
Open: 28.90
High: 28.95
Low: 28.20
Volume traded: 13,966,119
Value traded (SAR): 398,193,896.55
52-week range: 28.20–35.15
Market cap (intraday): 6.824T
Beta (5Y Monthly): 0.22
PE Ratio (TTM): 15.58
EPS (TTM): 1.81
Forward Dividend & Yield: 1.26 (4.35%)
Ex-Dividend Date: May 15, 2024
1y Target Est: 34.69
Shares outstanding: 242B
Dividend: 6.83%

While still heavily dependent on oil revenues, in 2023,

“Saudi Arabia’s non-oil economy was valued at 1.7 trillion Saudi Riyals (approximately 453 billion U.S. dollars) at constant prices, driven by steady growth in exports, investment and consumer spending. The Kingdom’s private-sector investments expanded 57% to reach a record high of 959 billion Saudi Riyals (254 billion dollars) while arts & entertainment and real service exports grew in triple-digits to the tune of 106% and 319%, respectively, reflecting the Kingdom’s transformation into a global destination for tourism and entertainment. Meanwhile, Saudi Arabia’s food sector recorded 77% growth; transport and storage services increased 29%, health and education recorded growth of 10.8% while, trade, restaurants and hotels grew 7%.”

To read more, click here, here and here.