Saudi Arabia's Aramco Share Offering: A Milestone for Economic Diversification

Saudi Arabia is set to price shares of its state oil giant Aramco at 27.25 Riyals ($7.27) each. The offering, part of Project Bond, aims to attract a wider range of investors to further the kingdom's economic diversification. The shares will start trading on Riyadh's Saudi Exchange next Sunday.

Saudi Arabia is poised to price shares in the offering of its state oil giant Aramco at 27.25 Riyals ($7.27) a piece, people familiar with the matter told Reuters on Friday.

Aramco's book was covered 4-5 times at the bottom of the price range, one person said. The Saudi government may sell up to a 0.7% stake in the world's top oil exporter. The banks on the deal had taken orders through Thursday and shares are expected to start trading next Sunday on Riyadh's Saudi Exchange.

The offering - codenamed Project Bond according to sources - has been in the works for months as a key step in drawing a broader range of investors after Aramco's record-breaking initial public offering (IPO) in 2019. The move will also further the kingdom's massive economic diversification programme. The deal will be a test of interest in Saudi markets after lukewarm demand from international investors for the IPO amid concerns about a high valuation, Saudi government control and the energy transition away from hydrocarbons. ($1 = 3.7504 riyals)