Close Menu
Dubai.News: Stay Updated With The Latest UAE & Global News
  • World
  • UAE
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • How to in Dubai
  • About Us
What's Hot

Diwali 2025: Dubai’s Hindu Temple and Gurudwara Expect 50,000 Devotees During Festive Week

October 20, 2025

Ejari and DEWA Connection: How They Work Together in Dubai (2025 Guide)

October 18, 2025

Setting Up Utilities When You Move Into a New Home in Dubai (2025 Guide)

October 18, 2025
Facebook X (Twitter) Instagram
Dubai.News: Stay Updated With The Latest UAE & Global News
Facebook X (Twitter) Instagram
  • World
  • UAE
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • How to in Dubai
  • About Us
Dubai.News: Stay Updated With The Latest UAE & Global News
  • Home
  • UAE
  • Middle East
  • World
  • Entertainment
Home - Saudi Arabia - Saudi Arabia Tests International Investor Interest with $13.1 Billion Aramco Share Sale
Saudi Arabia

Saudi Arabia Tests International Investor Interest with $13.1 Billion Aramco Share Sale

Aramco's New Offering Aims to Broaden Investor Base Amid Economic Diversification Efforts
Web DeskBy Web DeskJune 1, 20244 Mins Read
Share this post Facebook Twitter WhatsApp Email LinkedIn Telegram
thecradle

What To Know

  • “The enhanced cash flow position for the shareholders may not necessarily make the social slippery IPO adequate to lure those overseas investors who refrained from the IPO as a result of the fossil fuel controversies or governance problems,” added Hasnain Malik, the head of equity research, Dubai headquartered Tellimer.
  • In the words of Jim Krane, a research fellow at Baker Institute of Rice University, floating of Aramco shares can be a comparatively straightforward method of fundraising compared to attracting international investment for the huge projects of the kingdom under Vision 2030.
  • As said by Aramco CEO Amin Nasser, the sale offers existing investors, who are keen on growing their stakes, the chance to gain a large stake in a company with a diversified and deep shareholder base and highly liquid shares.

Dubai, May 31 (Reuters) – Saudi Arabia, its desire to unlock more international capital likely driving it, is poised to begin accepting orders for as much as $13. 1bn of shares in oil colossus Aramco (2222. SE) from Sunday. This sale demonstrates the kind of appeal in the Saudi market, especially given Aramco’s unprecedented IPO in 2019.

The kingdom and Aramco spelled out the strategy on Thursday, with the intention to offer up to 0. 7% of floating stake in the state controlled oil company, of which, 10% shall represent the share for retail buyers. The order-taking will be available to the consumers up to June 6 while the pricing will commence from June 7.

Known internally as Project Bond, it is certainly being viewed as a way for Saudi Arabia to spread the risk across the country’s limited economic base and attract a more diverse pool of investors. The sale will also finance the Kingdom’s development plan- Vision 2030, which is an economic diversification program headed by MbS.

However, this move comes at a relatively low foreign investor interest, which has in the past expressed concerns on high valuations, government control in Saudi, and shifting focus towards green ENERGY. Due to these factors, Aramco’s exposure was limited during the IPO operations, which resulted in a conservative strategy during IPO.

Some potential investors remain concerned with such factors as the environmental conditions and the governance structure. “The enhanced cash flow position for the shareholders may not necessarily make the social slippery IPO adequate to lure those overseas investors who refrained from the IPO as a result of the fossil fuel controversies or governance problems,” added Hasnain Malik, the head of equity research, Dubai headquartered Tellimer.

However, Aramco’s Chief Financial Officer Ziad Al-Murshed said that he hopes to sell shares at between 26. 7 riyahs ($7. 12) to 29 riyals, which is a slight premium to the IPO price. Market capitalization currently sits at $1. 87 trillion as opposed to what it was at the time of IPO, which came in at $1. 7 trillion.

Indeed, owing to the PIF, MbS has been funding different sectors such as electric vehicle production, sports investment, and an airline to focus on a post-oil economy besides creating employment. In the words of Jim Krane, a research fellow at Baker Institute of Rice University, floating of Aramco shares can be a comparatively straightforward method of fundraising compared to attracting international investment for the huge projects of the kingdom under Vision 2030.

A large portion of buyers are expected to be from the domestic local investors, making the scheme to be nearly fully funded by the buyers. Selling shares on the Saudi Exchange also involves some less regulatory and reporting obligations than some other exchanges, which helps.

The bank has solid backing from several advisers that include Klein & Co, Moelis & Co, SNB Capital, several other institutions such as Morgan Stanley, Citi, Goldman Sachs, HSBC, Bank of America, and JPMorgan. As said by Aramco CEO Amin Nasser, the sale offers existing investors, who are keen on growing their stakes, the chance to gain a large stake in a company with a diversified and deep shareholder base and highly liquid shares.

This share sale is occurring with an OPEC Sunday meeting in which the oil cartel, led by Saudi Arabia, has plans to decide on future production strategies. This meeting could potentially decide the fate of the global oil market as they have hinted on the continuation of the agreement to reduce output to 2025.

Global investors will be observing this event as an indicator of confidence accrued on Saudi Arabia in terms of its new economic status.

Related news:

Abha International Airport Becomes Saudi Arabia’s First Silent Airport Saudi Arabia Jobs: High Demand for AI Skills as 79% of Workers Anticipate Major Changes Within a Year Dar Global Announces Trump Tower Project in Jeddah Saudi Civil Defense Issues Safety Warnings Amid Heavy Rainfall Across the Kingdom
Share. Facebook Twitter WhatsApp Email Copy Link
Previous ArticleQatar and Canada Conduct First Round of Political Consultations
Next Article Dubai Shoppers Seize Massive Discounts on Perfume and Clothes During 3-Day Super Sale
Web Desk

Related Posts

Emirates Launches A350 Flights to Dammam, Marking Saudi Debut for New Aircraft

July 8, 2025
Read More

Saudi Arabia Launches $10 Billion AI Fund to Lead Middle East Tech Race

May 29, 2025
Read More

VUZ Raises $12M to Expand Immersive Video Platform Across UAE, Saudi Arabia, and Global Markets

May 19, 2025
Read More

UAE, Saudi, and Kuwait Real Estate Set for Strong Growth in 2025

February 13, 2025
Read More
Don't Miss
Holiday

Diwali 2025: Dubai’s Hindu Temple and Gurudwara Expect 50,000 Devotees During Festive Week

Dubai Gears Up for Grand Diwali Celebrations Dubai is glowing brighter than ever this week…

Read More

Ejari and DEWA Connection: How They Work Together in Dubai (2025 Guide)

October 18, 2025

Setting Up Utilities When You Move Into a New Home in Dubai (2025 Guide)

October 18, 2025

Ejari FAQs: Everything You Need to Know About Registration, Renewal, and Verification (2025)

October 18, 2025
Just In

How to Renew Your Ejari Contract in 2025

October 18, 2025

Ejari Registration at Authorized Centers in Dubai (2025 Guide)

October 18, 2025

Ejari Fees, Documents, and Requirements Explained (2025 Update)

October 18, 2025

What Is Ejari and Why You Need It in Dubai

October 18, 2025

Subscribe to Updates

Get the latest updates from Dubai News.

Explore

UAE

  • Crime
  • Education
  • Emergencies
  • Expo City Dubai
  • Environment
  • Government
  • Legal
  • Transport
  • Weather
  • Opinion

World

  • Africa
  • Asia
  • Americas
  • Europe
  • Gulf
  • MENA

Business

  • Auto
  • Aviation
  • Corporate
  • Economy
  • Energy
  • Finance
  • Markets
  • Property
  • Tech
  • Cryptocurrency
  • Telecom

Sports

  • Cricket
  • Football
  • F1
  • Golf
  • Horse Racing
  • Tennis
  • Local Sports

Entertainment

  • Gaming
  • Movies
  • OTT
  • Music
  • Local Events
  • Things to do in UAE
About Us

Dubai.News is an independent media platform dedicated to capturing the pulse of Dubai — from innovation and finance to culture, lifestyle, and global influence.

Our mission is to tell the stories shaping the world’s most dynamic city — connecting its vision to readers across the Middle East, Africa, and beyond.

Facebook X (Twitter) Instagram
Dubai.News: Stay Updated With The Latest UAE & Global News
  • Home
  • UAE
  • Middle East
  • World
  • Entertainment
A Fame By Sheeraz INC. Media Company. 8367 West Sunset Blvd, West Hollywood, CA 90069

Type above and press Enter to search. Press Esc to cancel.