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Saudi oil giant Aramco’s shares rise after stock sale set to raise $11.2 billion

The Saudi Aramco logo and stock chart are seen through a magnifying glass in this illustration taken on September 4, 2022.

Given Ruvic | Reuters

Shares in Saudi Arabia’s Aramco rose on Sunday following a share sale that will raise the state oil company by about $11.2 billion.

The shares were trading around 28.25 Saudi riyals ($7.53) on the Tadāwul Saudi Stock Exchange as of 11:30 a.m. local time (4:30 a.m. ET), above the stock’s offer to sell price. of 27.25 Saudi riyals. The price was at the lower end of the initial range of 26.70-29 Saudi riyals.

There appears to have been no lack of demand for the secondary offering, which was announced on May 30. Citing sources, Reuters reported that demand for the offering exceeded $65 billion and Aramco placed more than half of the sale with foreign investors. CNBC was unable to verify the reports.

It comes as Saudi Arabia presses ahead with ambitious plans to diversify its economy away from oil under Crown Prince Mohammed bin Salman’s Vision 2030 programme.

However, the plan, which includes a series of “gigaprojects”, comes with a hefty price tag, with its crown jewel, the futuristic city of Neom, expected to cost around $500 billion.

Meanwhile, oil remains volatile, with prices falling for a third week as uncertain demand prospects continue to weigh and investors push back expectations of an interest rate cut by the US Federal Reserve.

—CNBC’s Ruxandra Iordache contributed to this report.

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