Saudi Arabia to Sell Aramco Shares Worth 16 Trillion Won... Public Offering on the 2nd of Next Month

Saudi Arabia is set to raise approximately $11.5 billion (about 16 trillion won) through the sale of shares in its state-owned oil company, Aramco.

On the 30th (local time), according to the economic media CNBC, Aramco, listed on the Saudi stock exchange, announced plans to sell shares through a public offering starting on the 2nd of next month. Aramco plans to sell 1.545 billion shares at a price range of 26.7 to 29 riyals per share (approximately 9,800 to 10,700 won). The sale size is estimated to be about $11.5 billion at the midpoint of the offering price.

Previously, Aramco raised a record $29.4 billion during its initial public offering (IPO) in 2019.

The funds secured through this will be invested in various projects that Saudi Arabia is promoting to diversify its economy, which is heavily dependent on oil. CNBC reported, "Amid the global transition trend toward eco-friendly energy, questions are being raised about the long-term profitability of existing major oil and gas companies." The Saudi government holds more than 82% of Aramco's shares.

Aramco's appeal to investors lies in its high dividend yield. According to FactSet, as of May 30, Aramco's dividend yield stands at 6.6%. This far exceeds that of industry peers Chevron at 4.2% and ExxonMobil at 3.3%. Aramco previously expanded its fourth-quarter dividend payout to $20.3 billion.

This content was produced with the assistance of AI translation services.