As the boss of the world’s biggest oil company flew around the world in early June to drum up investor interest in one of the biggest share sales in recent years, he could breathe a sigh of relief.
This account of the share sale, which Bloomberg News first reported in January, is based on interviews with dozens of people directly involved in the offering, who asked not to be identified discussing private meetings and conversations. Representatives for Aramco and the Saudi government did not respond to requests for comment.
About two years ago, MBS’s closest advisors—including Aramco Chairman Yasir Al Rumayyan—started to hold secret meetings with bankers, investors and consultants to gauge when they could sell off more of the oil giant, which has long been considered one of the kingdom’s crown jewels. Russia’s invasion of Ukraine had also caused oil prices to soar to their highest level in years. That’s left Aramco sitting on billions of dollars of cash that it could use to boost dividend payouts. As the largest shareholder, that would help the Saudi state. Boosting the dividend yield would also address one of the major gripes of foreign investors.
Unlike during the IPO process, Aramco shares were already trading, meaning there was daily visibility into how investors valued the company. As a result, tensions were markedly lower. Without the backdrop of trying to bridge the expectations of mercurial owners and wary investors, bankers worked better together.
Late in the evening on May 30, as bankers across Riyadh unwound amid the increasingly stifling desert heat, phones started ringing. Aramco had formally launched the share sale just a few hours ago. The company already had a large group of banks, but was now spreading the net wider.