DUBAI, June 2 (Reuters) - Saudi Arabia kicked off a

secondary share sale in oil giant Aramco on Sunday, a

landmark deal that could raise up to $13.1 billion in a major

test of international appetite for the kingdom's assets.

The banks on the deal will take institutional orders through

Thursday and will price the shares the following day, with

trading expected to start next Sunday on Riyadh's Saudi

Exchange.

The offering will be a gauge of Riyadh's appeal to foreign

investors, a key plank of the kingdom's ambitious plan to

overhaul its economy. Foreign direct investment has repeatedly

missed its targets.

The sale will also bolster efforts by the government to wean

itself off its "oil addiction", as Saudi de facto ruler Crown

Prince Mohammed bin Salman once called it, analysts and sources

have said.

The sovereign wealth fund, the Public Investment Fund (PIF),

the preferred vehicle driving the mammoth agenda that has poured

tens of billions of dollars into everything from sports to

futuristic desert cities, is likely to be a beneficiary of the

funds, they said.

Aramco's shares were down 2.6% on Sunday to 28.25 riyals

($7.53) as of 0825 GMT.

Saudi Arabia is offering investors about 1.545 billion

Aramco shares, at 26.7 to 29 riyals, or just under $12 billion

at the top end of the range. The banks can increase the offering

by a further $1 billion.

If all the shares are sold, the Saudi government will be

cutting its stake in the world's top oil exporter by 0.7%.

The world's top investment banks are helping to manage the

sale - Citi, Goldman Sachs ( GS ), HSBC, JPMorgan ( JPM ), Bank of America ( BAC ) and

Morgan Stanley ( MS ) - along with local firms Saudi National Bank, Al

Rajhi Capital, Riyad Capital and Saudi Fransi.

M. Klein and Company and Moelis are independent financial

advisers for the deal.

UBS Group's Credit Suisse Saudi Arabia unit alongside BNP

Paribas, Bank of China International and China International

Capital Corporation are also helping to seek buyers for the

shares, according to a stock exchange filing on Sunday.

About 10% of the new offering will be reserved for retail

investors, subject to demand.

The deal kicks off as the OPEC+ group of oil producers is

set to meet on Sunday to determine output policy, with some

ministers meeting in Riyadh, according to OPEC+ sources.

The de facto Saudi-led Organization of the Petroleum

Exporting Countries and allies led by Russia, together known as

OPEC+, is currently cutting output by a total of 5.86 million

barrels per day (mbpd), equal to about 5.7% of global demand.

Still, Aramco - long a cash cow for the Saudi state -

has boosted its dividends, introducing a new performance-linked

payout mechanism last year, despite lower profits as a result of

the lower volumes. Saudi Arabia is producing about 9 mbpd of

crude, roughly 75% of its maximum capacity.

The Saudi government directly holds just over 82% of Aramco.

PIF owns 16% - 12% directly and 4% through subsidiary Sanabil,

with the remainder held by public investors.

($1 = 3.7507 riyals)