Arabian Business, Tuesday, Dec 3, 2019 | Rabi Al Thani 6, 1441
Kuwait said to invest up to $1bn in Saudi Aramco IPO
Kuwait’s government will invest as much as $1 billion in the initial public
offering of Saudi Aramco as the kingdom asks regional allies to bolster the
record share sale, according to people familiar with the matter.
The Kuwait Investment Authority had been reluctant to commit significant funds
to the IPO, but was told by the government that a stake was in the country’s
strategic interest, the people said, asking not to be identified discussing a
Kuwait communicated its decision to Aramco on Monday.
Kuwait’s decision follows Abu Dhabi, the oil-rich member of the UAE, which has
decided to invest $1.5 billion in Aramco, people familiar with the matter said
Bringing in another major investor from the Gulf region will be a relief for
Saudi Arabia after plans to market the IPO globally were abandoned. Aramco had
high hopes of drawing in sovereign investors, including a big purchase from
China, but has yet to announce any firm commitments.
Saudi Arabia is looking to raise more than $25 billion selling a 1.5 percent
stake in the world’s largest oil producer. The institutional part of the book
now has bids totaling SR144 billion ($38 billion), covering that part of the
proposed sale 2.3 times.