Saudi Arabia is reportedly positioning itself for a significant share sale in its oil behemoth, Aramco, potentially launching as soon as June, with the sale poised to be one of the largest in the region’s history. According to two individuals privy to the matter, the transaction could generate nearly $10 billion, although they caution that the process is still being fine-tuned and specifics may evolve.
The planned listing of shares will take place in Riyadh and is set to be a fully marketed offer, rather than a rapid-fire accelerated sale. While the details of the offering are being kept under wraps, with sources requesting anonymity due to the sensitive nature of the information, Aramco has abstained from commenting on shareholder decisions, and the government’s communication office has yet to issue a statement.
Financial institutions such as Citigroup, Goldman Sachs, and HSBC have been mentioned in previous reports as potential managers of the sale. This move aligns with Saudi Arabia’s broader economic strategy known as Vision 2030, which aims to diversify the kingdom’s economy away from oil dependence and foster growth in the private sector. The Saudi government retains a commanding 90% stake in Aramco and depends significantly on its dividend contributions.
Despite a dip in first-quarter earnings attributed to weaker oil prices and sales volumes, Aramco has announced its intention to distribute $31 billion in dividends. Since its record-breaking initial public offering in 2019, which was the largest in the world at the time, Aramco’s shares have experienced fluctuations, peaking at 38.64 riyals and recently closing at 29.95 riyals.