Dubai, May 31 (Reuters) — Saudi Arabia began accepting orders for as much as $13.1 billion worth of shares in oil giant Aramco (2222.SE) on Sunday, in the kingdom's latest test of international investor interest in its energy sector.
The move marks one of the largest secondary equity offerings in the Middle East since Aramco's landmark IPO in 2019.
The Aramco Share Sale Structure
The kingdom and Aramco announced plans to offer up to 0.7% of the state-controlled oil company's floating stake, with 10% of that allocation reserved for retail buyers. Order-taking was open through June 6, with pricing set for June 7.
Known internally as "Project Bond," the sale is designed to broaden Aramco's shareholder base, attract a more diverse pool of investors, and reduce the kingdom's dependence on a narrow economic base. Proceeds will flow to the Saudi government to help finance Vision 2030, the sweeping economic diversification program championed by Crown Prince Mohammed bin Salman (MbS).
International Investors Remain Cautious
Despite the scale of the Aramco share sale, foreign investor appetite has been measured. International buyers have historically expressed concerns over high valuations, the Saudi government's controlling stake in Aramco, and a broader shift in institutional portfolios toward green energy.
Those dynamics constrained foreign participation during the 2019 IPO and appear to persist today. "The enhanced cash flow position for shareholders may not be sufficient to lure overseas investors who shunned the IPO over fossil-fuel controversies or governance concerns," said Hasnain Malik, head of equity research at Dubai-based Tellimer.
Pricing and Market Capitalization
Aramco CFO Ziad Al-Murshed set the offer price range at between SAR 26.7 ($7.12) and SAR 29 per share — a modest premium to the IPO price. Aramco's market capitalization at the time of the sale stood at approximately $1.87 trillion, compared with $1.7 trillion at IPO.
Vision 2030 Funding Imperative
The Public Investment Fund (PIF), MbS's $930 billion sovereign wealth vehicle, has been deploying capital across electric vehicles, sports investments, a new national airline, and a range of other sectors as part of its post-oil economic blueprint. Jim Krane, a research fellow at Rice University's Baker Institute, noted that floating Aramco shares is "a comparatively straightforward fundraising method" relative to attracting foreign direct investment for the kingdom's massive Vision 2030 gigaprojects.
Domestic investors are expected to anchor the deal, with the Saudi Exchange offering fewer regulatory and reporting burdens than many international bourses.
Advisers and Market Context
The offering has the backing of a heavyweight advisory syndicate: Klein & Co, Moelis & Co, SNB Capital, Morgan Stanley, Citi, Goldman Sachs, HSBC, Bank of America, and JPMorgan.
Aramco CEO Amin Nasser positioned the sale as an opportunity for existing shareholders to grow their stakes in a company with a deep, diversified shareholder base and highly liquid shares.
The Aramco share sale coincided with an OPEC meeting at which the oil cartel, led by Saudi Arabia, discussed future production strategies — including the possible extension of output-reduction agreements through 2025. Global investors are watching the event as an indicator of Saudi Arabia's confidence in its evolving economic standing.
