Saudi Aramco, the oil giant, recently announced that international investors eagerly bought up the majority of shares in its latest offering, aiming to raise $11.2 billion. This secondary offering will provide a financial boost to Saudi Arabia as the country focuses on large-scale projects like resorts and stadiums in preparation for a post-oil future.
Aramco’s successful offering resulted in a market capitalization of around $1.85 trillion, with 58 percent of shares allocated to international investors. Demand was particularly strong from the European Union and the United States, showcasing the global interest in the company.
The secondary offering, part of the kingdom’s Vision 2030 reform program, positioned Aramco as a key player in the global equity market, with significant interest from both institutional and retail investors. Despite economic challenges, Aramco remains a profitable investment due to its performance-based dividend structure.
Saudi Arabia, a major oil exporter, continues to invest in Aramco, maintaining its status as a crucial revenue source. With record profits in recent years and a strategic focus on diversifying its economy, Aramco remains a key player in the global energy market.