Aramco Secondary Offering Raises About $12.35 Billion

Saudi Aramco completed a secondary offering of its common shares in June 2024, with total proceeds reaching about $12.35 billion after the exercise of the additional allocation option. The shares were offered and listed exclusively on the Saudi Exchange (Tadawul) under ticker 2222 on the Main Market.

The offering covered 1.545 billion existing shares, representing roughly 0.64% of Saudi Aramco's issued share capital. Both institutional and retail subscribers received a final price of SAR 27.25 set within an announced range of SAR 26.70 to SAR 29.00 following an institutional book-building process that concluded with final pricing on 7 June 2024.

Institutional investors were allocated around 90% of the offer, or about 1.39 billion shares, while retail investors received the remainder. Cash settlement and refunds of any excess subscription funds to retail participants were completed shortly after pricing. Minimum expected proceeds at the pricing stage were near $11.2 billion, rising to about $12.35 billion once the additional allocation option was exercised.

On the first trading day after completion, the shares opened at SAR 27.95 and closed at SAR 28.60, a daily gain of about 1.06%. Importantly, this was a sale of existing government-held shares rather than a new issue of capital, so net proceeds accrue to the Government of the Kingdom of Saudi Arabia. A significant portion is expected to support Public Investment Fund financing and broader fiscal needs. The government remains the controlling shareholder, with its direct holding reduced by about 0.64%.

For residents and investors in the Kingdom, the transaction stands out as the largest secondary offering in the EMEA region since 2000 and the largest in the Middle East since the 2019 Aramco IPO, underlining the depth of the local market and the availability of digital subscription channels for retail participants.

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