Aramco launches $10b offering

Saudi Arabia is set to launch a secondary offering of Aramco shares, aiming to raise over $10 billion, potentially one of the largest deals in recent years, Bloomberg reported on Thursday.

The government will run a book-building process until next Thursday, attracting informal interest exceeding $10 billion from investors in the Middle East and Europe.

The offering may see a discount of up to 10 per cent from the trading price. Banks like Citigroup, Goldman Sachs, and HSBC will lead the deal, with local firms likely involved.

The move follows Aramco’s stock drop and an upcoming OPEC+ meeting. Moreover, the offering supports Saudi Arabia’s economic transformation plans, including projects like Neom.

It comes as the kingdom faces economic challenges amid low oil prices. Aramco’s production remains constrained by OPEC+ policy.

The offering tests global investors’ appetite amidst climate concerns and rising fossil fuel uncertainties. It coincides with a surge in Saudi IPOs, impacting the kingdom’s stock market.