Saudi Arabia is preparing a major share sale of Saudi Aramco, its energy giant, which is scheduled for next June. This operation promises to be one of the most significant transactions in the region.
It is important to note that as a result of these announcements, Aramco shares experienced a slight rise following media reports of the upcoming share sale.
Saudi Aramco’s share price
According to close sources, the offering could generate around $10 billion. Preparations are already underway and details could still change. The shares will be listed in Riyadh and the sale will be fully marketed rather than done quickly within a few days, the sources said.
Aramco’s initial public offering (IPO) at the end of 2019 was historic, raising $25.6 billion with the sale of 1.5% of the Saudi state-owned company, making it the world’s largest IPO.
Aramco, when asked about the sale, stated, “Decisions on the sale of shares are a matter for our shareholders and not something we can comment on.”
The government’s communications office did not immediately respond to requests for comment.
Banks selected for the transaction
Earlier, banks such as Citigroup, Goldman Sachs and HSBC were reported to have been selected to handle the sale, according to Reuters.
Saudi Arabia has embarked on an economic transformation under the Vision 2030 plan, which seeks to diversify the economy beyond oil oil and encourage private sector growth.
It should be noted that the Saudi government remains Aramco’s largest shareholder, holding a 90% stake and relying heavily on payments from the company. Aramco announced that it expects to pay $31 billion in dividends, despite reporting lower earnings in the first quarter due to falling oil prices and volumes sold.
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Source: worldenergytrade.com
Photo: shutterstock
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