Saudi government’s proceeds from Aramco’s secondary offering could hit $12.3bn

RIYADH: The Saudi government’s proceeds from oil giant Aramco’s secondary offering of its shares hit SR42.10 billion ($11.2 billion) and are expected to rise further.

In a statement, Aramco said that if the additional allocation is exercised, the government’s proceeds will surge to reach SR46.1 billion. 

This falls in line with the company’s strategic vision to become the world’s leading integrated energy and chemicals company.    

It also aligns well with its aim to strengthen its global position by maintaining its oil processing, expanding its gas production capacity, and integrating its upstream and downstream operations to secure demand for its crude oil.    

Earlier in June, Aramco began the sale of more than $10 billion worth of shares, marking the company’s second listing after its initial public offering in December 2019 which raised $25.6 billion – the largest flotation in history.  

“The offering will be made to institutional investors in Saudi Arabia, institutional investors located outside Saudi Arabia who are qualified in accordance with the Rules for Foreign Investment in Securities to invest in listed securities and eligible retail investors in the Kingdom and other GCC (Gulf Cooperation Council) countries,” stated Aramco in a press release at the time. 

It also added at the time: “Outside the Kingdom, the offering will be made in compliance with Regulation S under the US Securities Act of 1933.”