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STORY: Saudi Arabia is poised to raise more than $11.2 billion selling more shares in oil giant Aramco, raising fresh funds for Saudi Arabia’s spending plans, the company on Friday (June 7).

The stock was priced at $7.27, the lower end of expectations.

Saudi Arabia has been seeking to lure international investment to pour tens of billions of dollars into projects in a bid to diversify away from its reliance on oil.

Vision 2030, Crown Prince Mohammed bin Salman’s plan to transform the economy, is funding enterprises from electric vehicles to futuristic cities in the desert.

That’s mainly via its $925 billion Public Investment Fund (PIF), which Reuters reported is aiming to sharpen its focus after scaling back some flagship “giga-projects”.

However, sources told Reuters that in this share sale, foreign demand was stronger than expected, and greater than the international demand for Aramco's 2019 record-breaking IPO.

One source said interest came from China and elsewhere in Asia - while another said interest came from Europe and London.

Analysts have said proceeds from the share sale are likely to be funneled to the PIF.

But funds could also help plug the kingdom's likely budget deficit this year, as the oil price has weakened.

In response, the de facto Saudi-led oil group OPEC+ cut oil production by over 2 million barrels a day - an agreement they plan to phase out in October.