Saudi Arabian state-backed oil giant Aramco has set a price range on a potential $11.9 billion stock offering. This significant move is being guided by White & Case LLP, with underwriters counsel Latham & Watkins LLP, launching a massive stock sale five years after its record-breaking debut.
Aramco’s Planned Share Offering
The Saudi Arabian Oil Company, known as Aramco, plans to offer 1.545 billion shares priced between 26.70 and 29 Saudi riyals ($7.12 to $7.73), according to documents posted Thursday on the company’s website. The secondary offering would raise about 44.8 billion Saudi riyals for the kingdom if shares price at the high end.
Dhahran-based Aramco will begin marketing the offering to institutional investors Sunday and retail investors, who will be allocated about 10% of the offering, on Monday. Aramco expects to announce a final price on Friday, June 7, according to its website.
Aramco $11.9B Stock Offering : Economic Diversification Efforts
The Saudi government, Aramco’s principal shareholder, is raising the money as it seeks to diversify its economy beyond oil. Saudi Arabia reportedly has several mega projects underway that need fresh funding, including a new city called Neom and a global airline.
