Saudi Arabia is preparing to launch a multi-billion-dollar share sale of its state-owned energy giant, Aramco, as early as June. According to sources familiar with the matter, the offering could raise around $10 billion, making it one of the region’s biggest stock deals.
The shares will be listed on the Riyadh stock exchange, and the sale will be a fully marketed offering rather than an accelerated transaction over a few days. Banks including Citigroup, Goldman Sachs, and HSBC have been lined up to manage the sale.
This share sale is part of Saudi Arabia’s broader economic transition plan, known as Vision 2030, which aims to reduce the country’s reliance on oil and expand the private sector. The Saudi government remains the majority shareholder in Aramco, holding a 90% stake, and heavily depends on the company’s payouts.
Aramco reported lower earnings for the first quarter of 2024 due to lower oil prices and reduced sales volumes. However, the company still expects to pay $31 billion in dividends this year.
Since Aramco’s initial public offering in 2019, the world’s biggest IPO, the company’s shares have fluctuated. After an initial public offering price of 32 riyals, the shares reached a high of 38.64 riyals a year ago, but have since declined to 29.95 riyals as of Thursday’s close.