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Saudi Aramco, Saudi Arabia’s state-owned oil company, is seeking to sell $12 billion in shares to investors.
Bloomberg reports that the company is doing a so-called “road show,” during which it makes sales pitches to major institutional investors, in order to increase demand. But the outlet reports that demand is already so high that the entire stake was spoken for in a matter of hours.
Saudi Arabia will still own the vast majority of the company, both directly and through its Public Investment Fund. The country is using some of the proceeds to help diversify its economy in anticipation of so-called “peak oil,” when the commodity’s demand and/or supply begin to fall for climate and alternative energy-related reasons. One big priority for the new economy has been tourism, which Saudi Arabia has been working to increase through the creation of new attractions and travel options.
Back in 2020, Reuters reported that Aramco raised $29.4 billion for its initial public offering. It remains the largest IPO in history, surpassing the $25 billion that Chinese e-commerce giant Alibaba raised in 2014.
Aramco remains one of the most valuable companies in the world, with a market capitalization just under $2 trillion.