In the news from Bloomberg they said that many investors from other countries brought about 60% of the shares in Saudi Aramco’s $11.2 billion sale. This is a big change from when Aramco first sold shares in 2019 mostly to people in Saudi Arabia.
Shift in Investor Demographics
The sale got a lot of interest from the United States and Europe. Also investors from the United Kingdom, Hong Kong and Japan bought shares. People wanted to buy more than $65 billion worth of shares in total.
Growing Confidence in Aramco
When Aramco first sold shares most investors were from Saudi Arabia because people from other countries weren’t sure if the company was worth as much as they said. This time more international investors are interested.
Market Response
At first the price of Aramco’s shares went down a bit in Riyadh but then they went up by about 1%.
International Participation
About 450 funds and more than 125 new international investors took part in this sale.
Foreign Ownership Increase
Aramco said that now most of its shares are owned by foreign funds. These investors own about 0.73% of the company.
Appealing Dividend
People are interested in buying Aramco shares because the company pays a big dividend which means it gives back money to its shareholders. Even though the company’s value is high, people think it’s a good investment because of the dividend.
Economic Boost for Saudi Arabia
Saudi Arabia got enough bids to sell all its shares in just a few hours. They will make at least $11.2 billion from this sale which will help them invest in their country’s economy.
Market Dynamics
The final price for the shares was lower than what was expected. But the price has been going down since they announced the sale.
Global Investor Outreach
People were watching to see how many investors from other countries would buy shares. The executives from Aramco talked to investors in London and the US to get them interested.
Saudi Government’s Continued Ownership
The Saudi government still owns most of Aramco and they will keep owning most of it even after the sale.
