Saudi Arabia eyes multi-billion-dollar Aramco share sale in June

Saudi Arabia is preparing to launch a major share sale in its state-owned energy giant, Aramco, potentially raising around $10 billion, Reuters reported citing sources familiar with the matter.

This move, anticipated to happen as soon as June, could mark one of the region's largest stock deals in recent years.

The proposed share sale will involve a fully marketed offering on the Riyadh stock exchange, rather than a rapid sale over a few days.

Sources indicated that the final details of the sale are still being finalised and could change.

When approached for comment, an Aramco spokesperson stated, "Decisions about share sales are matters for our shareholders and are not something we are able to comment on."

The Saudi government's communication office did not immediately respond to requests for comments.

Major international banks, including Citigroup, Goldman Sachs, and HSBC, had previously been selected to manage the sale, underlining the global financial community's involvement in this transaction.

This share sale aligns with Saudi Arabia's ambitious Vision 2030 initiative, which aims to diversify the nation's economy and reduce its dependence on oil revenue.

The Saudi government, holding a dominant 90 per cent stake in Aramco, relies heavily on the company's financial contributions as it crosses this economic transformation.

Despite reporting lower earnings in the first quarter due to reduced oil prices and sales volumes, Aramco remains a crucial financial asset for the kingdom.

The company recently announced plans to distribute $31 billion in dividends, indicating its continued profitability and importance to Saudi Arabia's fiscal health.

Since its record-breaking initial public offering in 2019, where Aramco's shares debuted at 32 riyals, the stock has experienced fluctuations, reaching a peak of 38.64 riyals last year.

As of the latest trading session, Aramco shares closed at 29.95 riyals.

This planned share sale represents not only a significant financial manoeuvre but also a step towards achieving the broader objectives of Vision 2030, positioning Saudi Arabia for a more diversified and sustainable economic future.

(With inputs from Reuters)