Aramco Kicks Off Giant Share Sale in Test of Investor Appetite
- Follow-on offer opened on Sunday and runs through Thursday
- Saudi Arabia has raised over $40 billion in debt this year
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Aramco on Sunday kicked off a share sale to raise about $12 billion for Saudi Arabia, one of the biggest deals in recent years that will test investor interest in the kingdom’s assets.
Saudi Arabia is looking to attract more international shareholders after Aramco’s mega IPO five years ago turned out to be largely a local affair. Investors will need to weigh a $124 billion annual dividend payout, one of the world’s heftiest, against shares that are far more expensive than other energy supermajors. Government control and the demand outlook for oil in the face of climate change also present long-term risks.