The Saudi Arabian government is currently in the process of selling shares in the oil company Aramco, with the deal estimated to be worth approximately 10.28 billion euros or 11.2 billion dollars. The government plans to sell 1.55 billion shares at a price of 6.67 euros per share, which is slightly lower than the previous share price of 29 rials.
According to Bloomberg reports, the offer book for the shares was quickly filled last Sunday, indicating that the sale may be imminent. Initially, it was expected that the bidding round would conclude on Thursday, but this has been extended due to high demand from foreign investors who are eager to purchase shares of Aramco. This shift marks a significant departure from 2019 when international investors were hesitant to invest in the company due to concerns about geopolitical risks and declining oil prices.
Aramco is widely regarded as one of the largest oil companies in the world and attracts investors due to its substantial dividends. Annually, Aramco pays out approximately 124 billion dollars in dividends, making it an attractive investment for those seeking stable returns. The company’s market value currently sits just under 2 trillion dollars and has been one of the most valuable companies in the world for years, surpassed only by Microsoft, Nvidia, and Apple in spring 2022 when their market values slightly exceeded $3 trillion each.
The Saudi government currently owns approximately 82% of Aramco while The Public Investment Fund retains a stake of around 16%. Proceeds from share sales will be used by the government to implement economic reforms within Saudi Arabia.
In conclusion, Aramco remains an attractive investment opportunity for foreign investors due to its substantial dividends and strong financial position despite geopolitical risks and declining oil prices in recent years.