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  • Writer's pictureRealFacts Editorial Team

Aramco’s Secondary Offering: A $12 Billion Bid for Financial Resilience


Aramco building

The Saudi state oil giant Aramco has started its second public offering, aiming to raise about $12 billion. It began on Sunday with shares priced between 26.70 and 29 Saudi riyals each. Aramco plans to sell 1.545 billion shares, roughly 0.64% of the company. The sale could bring in about $11.5 billion in the middle of this range, potentially reaching $13.1 billion. According to Reuters, the offering was expanded to include four more banks, such as Credit Suisse Saudi Arabia and BNP Paribas.


This is Aramco’s second time in public markets. 2019, it offered 1.5% of the company, raising a record $29.4 billion. Aramco’s offerings attract a lot of attention as the world’s largest oil company in terms of daily crude production and market value. The timing of this second offering is significant for Saudi Arabia, which is facing consecutive quarterly budget deficits due to big spending on trillion-dollar projects and declining oil revenues.


Yet, economists warn that while another Aramco stock sale could help financially, it won’t solve all the financial issues of Saudi Arabia’s Vision 2030 diversification plans. These plans, including big projects like new cities and infrastructure, need over a trillion dollars in investment. So, while the secondary offering offers financial help, it also highlights the enormous scale and challenges of Saudi Arabia’s economic transformation efforts.


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