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.

Messages to Aramco were not immediately returned Friday.

The stock sale also comes nearly five years after Aramco raised $29.4 billion in the world's largest-ever initial public offering. The new offering, if completed within its range, would rank as the fifth-largest follow-on or secondary offering since 2019, according to Dealogic.

Market Impact and Financial Performance

The latest offering amounts to less than 1% of Aramco's issued shares, which closed at 29 Saudi riyals ($7.75) Friday on the Saudi Exchange, also known as Tadawul. Aramco reported net income of $121 billion on about $441 billion of revenue in 2023.

Aramco $11.9B Stock Offering : Underwriting and Financial Advisory

Citigroup Saudi Arabia, Goldman Sachs Saudi Arabia, HSBC Saudi Arabia, J.P. Morgan Saudi Arabia Company, Merrill Lynch Kingdom of Saudi Arabia, Morgan Stanley Saudi Arabia, SNB Capital Company, Al Rajhi Capital, Riyad Capital, and Saudi Fransi Capital are underwriting the offering.

M. Klein and Company and Moelis & Company UK LLP are serving as Aramco's financial advisers.

White & Case LLP is representing Aramco, while Latham & Watkins LLP is representing the underwriters for the offering. Detailed counsel information was not immediately available.