by Maha El Dahan and Hadeel Al Sayegh
DUBAI (Reuters) – Saudi Arabia is set to raise more than $11.2 billion (10.3 billion euros) from the sale of shares in oil giant Aramco, sources said on Friday close to the file.
The price per share of this offer was set at 27.25 riyals ($7.27), according to sources, towards the bottom of the range between 26.7 to 29 riyals.
One of the sources said the order book had been covered four to five times.
Aramco and the Saudi government communications service had no immediate comment.
The sale of Aramco shares, which represents 0.64% of the group’s capital, is a key element in financing Crown Prince Mohammed bin Salman’s strategy aimed at diversifying the kingdom’s economy beyond its oil resources. It also constitutes a new test of Saudi Arabia’s ability to attract foreign funds.
The price set represents a discount of almost 4% to Aramco’s closing price on Thursday and gives the oil giant a valuation of around $1.76 trillion.
Trading of shares will begin on Sunday on the Riyadh Stock Exchange.
(Report by Maha El Dahan and Hadeel Al Sayegh; written by Yousef Saba and Nadine Awadalla; Blandine Hénault for the )
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