Saudi Aramco recently shared the breakdown of its shareholders following its offering of 1.545 billion shares. The company revealed that retail investors now hold around 0.76 percent of Aramco’s issued shares.
The oil giant also revealed that it allocated the majority of the shares constituting the institutional tranche to investors outside of Saudi Arabia. As of June 9, 2024, the public shareholders in Saudi Aramco include international institutional investors which now hold 0.73 percent of the company’s shares. Meanwhile, domestic institutional investors hold around 0.89 percent and Saudi Arabia’s government holds around 97.62 percent of issued shares.
Saudi Arabia’s government is a majority shareholder in Aramco and heavily relies on the oil company to finance its diversification efforts under Vision 2030. In 2016, the government launched the diversification program which aims to invest in the non-oil sector to diversify the economy away from dependence on oil.
Saudi Aramco revealed that its retail investors included individual investors with high net worths excluding executives, directors, and any other individuals who the company typically considers as insiders. Retail investors are investors who purchased shares in the company through the initial public offering (IPO), the latest offering, or through open market purchases since the IPO.
Read: Saudi Aramco’s $12 billion offering sees strong demand, value could rise to $13.1 billion
The offering was Saudi Aramco’s secondary public offering of 1.545 billion shares, representing 0.64 percent of its issued shares. The final offer price for both institutional and retail investors was SAR27.25 per share.
In December 2019, Saudi Arabia sold 1.7 percent of its shares in the company on the Saudi stock market, raising a record-breaking $25.6 billion and marking the initial public offering as the world’s largest IPO.
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