Saudi Arabia Considers Multibillion-Dollar Aramco Share Sale
The Kingdom is aiming to raise at least $10 billion.
Saudi Arabia is reportedly considering a follow-on offering in Aramco in February.[1]
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Sources familiar with the matter revealed to Bloomberg that the Kingdom is collaborating with advisors, aiming to raise at least $10 billion in a share sale on the Saudi Exchange.
The agreement may provide a financial boost to Crown Prince Mohammed bin Salman's ambitious plan to diversify the country's economy. Four years after Saudi Arabia earned a historic $30 billion in Aramco's first public offering (IPO), plans for this fresh share sale have emerged.
The date of the transaction is still up for debate.
Aramco, the biggest oil exporter globally, has a market valuation of little more than $2 trillion.
In January 2021, Crown Prince Mohammed bin Salman declared that the government planned to sell additional Aramco shares, with the earnings going to the sovereign wealth fund of the Kingdom. Last year, preparations for this change gathered steam, as reported by Bloomberg in May.
Currently, the Public Investment Fund (PIF) owns 8% of Aramco, while the Saudi government holds almost 90% of the company.
