Nandini Roy Choudhary, writer
In brief
- Shares were being traded at 28.85 Saudi riyals ($7.69) on the Tadwul Saudi stock exchange at 1:40 p.m. local time (6:40 a.m. ET), surpassing the stock sale offer price of 27.25 Saudi riyals.
- There seems to be a strong demand for the secondary offering, which is expected to raise approximately $11.2 billion for the state oil company.
- Saudi Arabia forges ahead with its ambitious plans to diversify its economy away from oil, under the leadership of Crown Prince Mohammed bin Salman and his Vision 2030 programme.
On Sunday, Saudi Arabia’s Aramco stock soared after a stock offering that raised $11.2 billion.
The stock traded at 28.85 Saudi riyals ($7.69) on the Tadwul Saudi stock exchange at 1:40 p.m. local time (6:40 a.m. ET), above the 27.25 Saudi riyal offer price. Pricing was below the initial 26.70–29 Saudi riyal range.
The secondary offering, announced on May 30, looks to have been popular. Aramco sold nearly half of the offering to international buyers, according to Reuters. Demand exceeded $65 billion. CNBC could not corroborate the report.
It follows Crown Prince Mohammed bin Salman’s Vision 2030, which aims to diversify Saudi Arabia’s economy away from oil.
The concept, which includes many “gigaprojects,” is expensive, with Neom, the futuristic city, anticipated to cost $500 billion.
Oil prices fell for the third week as investors delayed Fed rate cuts and an uncertain demand outlook weighed on the market.
Source : CNBC News
