Shares of Saudi oil giant Aramco rise after selling shares to raise $11.2 billion

Saudi Aramco’s logo and stock chart are seen through a magnifying glass shown in this illustration, taken September 4, 2022.

Dado Ruvic | Reuters

Shares of Saudi Arabia’s Aramco rose on Sunday following a stock sale aimed at raising for the state oil company about $11.2 billion.

Shares were trading around 28.25 Saudi riyals ($7.53) on the Tadāwul Saudi stock exchange at 11:30 a.m. local time (4:30 a.m. ET), above the stock’s offering price of 27 .25 Saudi riyals. Prices are at the low end of the initial Saudi riyal range of 26.70-29.

There seems to be no shortage of demand for the secondary offering, which was announced on the day May 30. Citing sources, Reuters reported offering needs reached 65 billion USD and Aramco has made more than half of the sales to foreign investors. CNBC could not verify the report.

It comes as Saudi Arabia pushes ahead with ambitious plans to diversify its economy away from oil under Crown Prince Mohammed bin Salman. Vision 2030 programme.

However, this plan – which includes a series of “mega projects” – comes with a hefty price tag, with its crown jewel, The futuristic city of NeomIt is estimated to cost only about 500 billion USD.

Meanwhile, oil prices remain volatile with falling prices in the near future third week as the uncertain demand outlook continues to weigh on investors push back expectations about interest rate cuts by the US Federal Reserve.

– CNBC’s Ruxandra Iordache contributed to this report.

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