FILE PHOTO: Workers are seen at the damaged site of Saudi Aramco oil facility in Khurais, Saudi Arabia, September 20, 2019. REUTERS/Hamad l Mohammed//File Photo Reuters

Saudi Arabian government institutions spent nearly $2.3 billion on Saudi Aramco’s record-breaking IPO, Bloomberg reported Tuesday.

That reliance on local funding sources contrasts with Aramco’s expressed desire to get more economically diverse.

The government sold two thirds of shares to institutional investors, and government institutions bought up 13.2% of the stake.

Saudi companies bought the largest portion of the tranche, taking 37.5% of shares offered, according to Bloomberg.

The nation plans to use funds raised by the offering to push its economy away from a reliance on oil and toward new ventures, including local investments and a new city estimated to cost $500 billion.

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Saudi Arabian government institutions sank nearly $2.3 billion into Saudi Aramco’s record-breaking initial public offering, Bloomberg reported Tuesday. That reliance on local funding sources contrasts with Aramco’s expressed desire to get more economically diverse.

The government offered two thirds of shares floated to institutional investors, and government institutions bought up 13.2% of the stake, Bloomberg reported, citing deal manager Samba Capital. Foreign investors were offered 23.1% of the institutional sale.

Saudi companies took the largest stake in the institutional sale, buying up 37.5% of shares. Public and private funds took 26.3% of the institutional offering, Bloomberg reported.

Saudi Arabia plans to use funds raised by the offering to push its economy away from oil reliance and toward new ventures. The nation’s sovereign wealth fund expects to spend „a lot“ of the funds on local investments to boost its domestic economy, Finance Minister Mohammed Al Jadaan said on Bloomberg TV Thursday. Other planned investments include a futuristic new city estimated to cost $500 billion, according to Bloomberg.

Aramco’s December 5 IPO broke records when the Saudi government priced the oil firm at $1.7 trillion, the highest valuation of any publicly traded company. Aramco sold 3 billion shares at 32 Saudi riyals ($8.53) each, The Wall Street Journal first reported. The total stake raised roughly $25.6 billion, though the shares offered represent only 1.5% of Aramco’s market cap.

The valuation fell below the $2 trillion threshold that Saudi Crown Prince Mohammed bin Salman sought, but still reaches the top of Aramco’s expected range of 30 to 32 riyals per share. The IPO was first viewed as a way to attract international investment, but as analysts balked at the kingdom’s lofty valuation, the government shifted focus to domestic investors.

Aramco is set to make its trading debut Wednesday on Saudi Arabia’s Tadawul exchange.

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