Saudi Aramco’s shares worth 17 trillion won sold out…Will NEOM City’s funding be secured?

Saudi Aramco, the state-owned oil company of Saudi Arabia, will sell 1.545 billion shares, or 0.64% of the total equity
Trading of the shares will begin on the local stock market from the 9th onward, ‘The sale of Saudi Aramco’s shares worth 17 trillion won has successfully concluded. The proceeds from this stock sale are expected to alleviate funding pressures on large Saudi government projects such as NEOM.’,
,
, ‘According to Bloomberg and other major foreign news outlets on the 2nd (local time), the shares offered for sale, valued at $12 billion (16.6 trillion won), were sold out within a few hours of the start of reservations. Due to a flurry of investor demand following the reservation launch, the Aramco shares were quickly sold within the price range of 26.70 riyals (9,800 won) to 29 riyals (17,000 won).’,
,
,

[Image Source=Reuters],
,
, ‘Banks participating in the sale will accept institutional orders until the 6th and set the stock price the following day. Subsequently, trading of these shares will be available on the Saudi Riyadh stock market from the 9th. While it has not been officially confirmed how many foreign investors participated, sources indicate that both Saudi and foreign investors were mixed in the order book.’,
,
, ‘The total number of shares for sale this time is 1.545 billion shares, accounting for 0.64% of Aramco’s total equity. The Saudi government can raise an additional $12 billion (16.6 trillion won) by exercising an option. The Saudi government holds over 82% of Aramco shares, while the Saudi sovereign wealth fund PIF separately owns 16%, and the rest is owned by individual investors.’,
,
, ‘The sale is considered one of the largest stock sales in the world since Aramco went public. Thanks to the successful completion of this stock sale, it is expected that large projects led by the Saudi government can escape short-term funding pressures. Saudi Arabia has been actively promoting economic diversification projects in various sectors such as the futuristic city NEOM, artificial intelligence (AI), sports, and tourism as part of preparations for potential oil shortages.’,
,
, ‘Aramco shares are considered attractive for their high dividend yield compared to similar companies. According to research firm FactSet, as of the end of last month, Aramco’s dividend yield was 6.6%, higher than Chevron’s 4.2% and ExxonMobil’s 3.3%. Aramco’s shares listed on the local stock market closed at 28.45 riyals (about 14,600 won), down 1.9% from the previous trading day. Aramco’s share price has dropped by about 14% since Bloomberg first reported intentions for additional share sales earlier this year and is currently trading at the lowest level in a year. The company’s market capitalization is around $1.8 trillion (250 trillion won).’,
,
, ‘On the other hand, the Organization of the Petroleum Exporting Countries (OPEC) and its allies in OPEC+ have agreed to maintain the current daily official oil production cut of 2 million barrels until the end of next year in order to stabilize the oil market. The total production cut of OPEC+ is currently around 5.86 million barrels per day, with 2 million barrels allocated as the official cut for all participating countries.’,
,