Saudi Arabia’s oil giant Aramco is selling off 1.5 billion shares (0.7% stake), priced between $7.12 and $7.73 a share, starting June 2. The move follows its landmark public offering that amassed $29.4 billion in 2019.
At the highest price, the shares would be worth $11.9 billion, with about 10% of the latest offering reserved for retail investors.
Since the 2019 IPO, only 1.73% of Aramco has traded on the Tadawul—Saudi Arabia’s stock exchange. Despite losing nearly 12% of their value this year, Aramco shares traded around $7.75 on Thursday.
The deal aims to attract global investors amid concerns about climate change and the future of fossil fuels. Profits from the sale will support the kingdom’s efforts to diversify its economy away from oil, a plan close to Crown Prince Mohammed bin Salman that he calls Vision 2023.
However, the country hasn’t seen much foreign investment, and experts believe that is the reason behind Aramco’s share sale.
Last year, Aramco reported a $121 billion profit, down from its 2022 record due to lower energy prices.
In January, Aramco paused its plans to increase crude production, citing the energy transition. Instead, it is now focusing on gas and hydrogen.
Despite these challenges, Aramco maintains investor appeal with a 6.6% dividend yield, surpassing Chevron’s 4.2% and ExxonMobil’s 3.3%. Valued at $1.8 trillion, Aramco ranks sixth globally, trailing Microsoft, Apple, NVIDIA, Alphabet and Amazon.