DUBAI (Reuters) -Saudi Arabia plans a multi-billion-dollar share sale in Aramco, potentially in June, according to two sources. It could become one of the region’s largest stock deals.
The offering could raise around $10 billion, one of the people said. The preparations are ongoing and the details could still change, the sources said, who were speaking on condition of anonymity because the matter is private.
The shares will be listed in Riyadh and it will be a fully marketed offering rather than an accelerated sale over a few days, they added. The government’s communication office and Aramco did not immediately respond to a request for comment.
Banks including Citigroup, Goldman Sachs and HSBC had previously been lined up to manage the sale, Reuters has reported.
Saudi Arabia has embarked on an economic transition known as Vision 2030, which puts an expanded private sector and non-oil growth at the center of its future development.The Saudi government remains overwhelmingly Aramco’s biggest shareholder, with a 90% stake, and heavily relies on its payouts.
Aramco expects to pay $31 billion in dividends, the company said earlier this month, despite reporting lower earnings for the first quarter amid lower oil prices and volumes sold.
Furthermore, the Saudi Aramco share sale could have far-reaching effects on the global energy market. As the world’s largest oil producer, Saudi Aramco’s IPO could influence oil prices and market dynamics. Investors and analysts will closely monitor the sale process and its impact on energy markets worldwide.
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