Aramco is pulling the trigger on a secondary sale of a 0.64% stake that could raise up to USD 11.6 bn today, it confirmed in a statement (pdf) on Thursday. The oil giant set the price range between SAR 26.70-29 (USD 7.12-7.73) per share. Institutional book-building gets underway in just a couple of hours, and will run until Thursday, 6 June, according to a separate statement (pdf).

The value of the sale could go up to USD 13.1 bn at the top end of the range under a “greenshoe option” which could see the size of the offering go up to a 0.7% stake if fully exercised, according to the statement. The option would allow bankers to buy some of the shares to stabilize the price of the offering.

A way to boost liquidity…: “The offering provides us with an opportunity to broaden the shareholder base amongst both Saudi and international investors,” Reuters quotes Aramco CEO Amin Nasser as telling reporters on a call after the announcement. “It also offers us an opportunity to increase liquidity and to increase our global index weighting.”

…and plug the budget deficit: The Kingdom is “resorting to the sale of equity in Aramco and to debt issuances,” Nasser is quoted as saying.

ALSO FROM ARAMCO- Aramco’s Prosperity7 fund backs Chinese AI startup Zhipu AI by taking part in a USD 400 mn investment round and becoming the first major foreign investor to back China’s attempts to challenge OpenAI and other Western tech companies . “The Saudis don’t want Silicon Valley dominating this industry,” a source close to the fund said. (Financial Times)

EGX30

26,923

-0.6% (YTD: +8.2%)

USD (CBE)

Buy 47.21

Sell 47.35

USD (CIB)

Buy 47.22

Sell 47.32

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28.25% lending

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THE CLOSING BELL-

The EGX30 fell 0.6% at Thursday’s close on turnover of EGP 8.8 bn (81.4% above the 90-day average). Local investors were net buyers. The index is up 8.2% YTD.

In the green: Eastern Company (+7.4%), CIB (+2.2%), and Sidi Kerir Petrochemicals (+2.0%).

In the red: Mopco (-8.3%), TMG Holding (-4.7%), and Fawry (-4.6%).

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