Aramco’s recent launch of its second public offering is a big financial move for the Saudi state oil giant, aiming to raise about $12 billion. The offering offers shares at a price range of 26.70 to 29 Saudi riyals each and plans to sell 1.545 billion shares, which is about 0.64% of the company. This move shows Aramco’s strategic plan to use its position in the market.
Even though Aramco went public before with its huge 2019 initial public offering (IPO), which raised $29.4 billion and was the largest IPO ever, this second offering is still important for the world’s biggest oil company in terms of both daily oil production and market value. But, this second offering comes at a time when Saudi Arabia is dealing with financial challenges, like consecutive quarterly budget deficits and the ambitious Vision 2030 plans to diversify the economy.
Even though the second offering could bring in a lot of money, economists say it might only cover a small part of what Saudi Arabia needs for its big Vision 2030 projects, which are expected to cost over a trillion dollars. This shows the tricky economic situation the kingdom is in, balancing spending a lot on big projects with the money it gets from oil sales, which can change a lot. Aramco’s move isn’t just about money—it’s also about Saudi Arabia’s big economic goals and the tough times it’s facing in the global energy market.