Saudi Aramco is reportedly exploring the possibility of selling a 2.5% stake in the company valued at $50 billion.
Crown Prince Mohammed Bin Salman is said to be advocating for this secondary share sale, with an aim to finalize the transaction by the end of the year.
Saudi Aramco eyes $50 billion stock sale on Riyadh Exchange
To facilitate this offering, Aramco has been in discussions with potential investors, including multinational oil firms and sovereign wealth funds.
The plan is to conduct the offering on the Riyadh Stock Exchange, a decision made to mitigate legal risks linked to an international listing.
It’s worth noting that Saudi Arabia had originally intended to sell Aramco shares amounting to up to $50 billion last year but postponed due to unfavorable market conditions.
Saudi Aramco is widely regarded as the world’s largest oil company, boasting a market value of $2.25 trillion.
In 2019, it executed the largest initial public offering (IPO) in history, raising $25.6 billion and subsequently increasing the total to $29.4 billion.
In 2022, Saudi Aramco reported its highest annual profit as a listed company, reaching a record net profit of $161.1 billion.