In an exclusive report, Reuters revealed that Saudi Arabia is preparing for a multi-billion dollar share sale of its state-owned energy giant Aramco as early as June 2024.
Sources familiar with the matter state that the offering could raise around $10 billion, making it one of the biggest stock deals in the region’s history.
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- Exclusive: Saudi Aramco is planning a $10 billion share sale as soon as June.
- One of the biggest stock listings ever in the Middle East region.
- It furthers Saudi Arabia’s Vision 2030 economic diversification plan.
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Massive Aramco Share Sale Coming as Soon as June
The Upcoming Aramco Share Sale: What We Know
According to insiders speaking on condition of anonymity, the preparations for this Aramco share sale are ongoing, though details could still change.
A few key points about the offering:
- Shares will be listed on the Riyadh stock exchange
- It will be a fully marketed public offering rather than an accelerated private sale
- Major banks like Citigroup, Goldman Sachs, and HSBC are expected to manage the sale
- The Saudi government would remain the majority shareholder with 90% ownership after the sale
Part of Saudi Vision 2030 Economic Transition
This landmark Aramco share sale is part of Saudi Arabia’s Vision 2030 plan to reduce economic reliance on oil exports.
By expanding the private sector, the government aims to drive non-oil business growth and economic diversification.
Despite lower Q1 earnings due to reduced oil prices and sales volumes, Aramco still expects to pay $31 billion in dividends this year.
The Saudi government heavily relies on these payouts from the company it currently owns 90% of.
Since Aramco’s record-breaking $25.6 billion IPO in 2019 at 32 riyals per share, the stock price peaked at 38.64 riyals before closing at 29.95 riyals on May 23rd, 2024. This upcoming secondary offering could spur renewed investor interest.
With final details still being determined, all eyes will be on the Saudi Aramco share sale this June.
It represents a crucial step in the Kingdom’s pivot towards a more diversified, post-oil economic future.
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