Saudi Arabia plans to sell Aramco shares in June, Reuters sources say

Logo of Aramco, officially Saudi Arabian Oil Group, Saudi oil and natural gas company, seen on the second day of the 24th World Petroleum Congress at the Big 4 building in Stampede Park, on September 18, 2023, in Calgary, Canada.

Artur Widak | Nurfoto | fake images

Saudi Arabia is planning a multibillion-dollar share sale in energy giant Aramco starting in June in what would be one of the region’s biggest stock deals, two people familiar with the matter said.

The offering could raise about $10 billion, one of the people said. Preparations are ongoing and details could still change, said the sources, who spoke on condition of anonymity because the matter is private.

The shares will be listed in Riyadh and will be a fully marketed offering rather than an accelerated sale within a few days, they added. The government communications 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 handle the sale, Reuters reported.

Saudi Arabia has embarked on an economic transition known as Vision 2030, which places an expanded private sector and non-oil growth at the center of its future development. The Saudi government remains overwhelmingly Aramco’s largest shareholder, with a 90% stake, and relies heavily on it for payments.

Aramco expects to pay $31 billion in dividends, the company said earlier this month, despite reporting lower first-quarter profits amid lower oil prices and volumes sold.

Since its IPO in 2019, the world’s largest IPO, Aramco shares have risen from an IPO price of 32 rials to a high of 38.64 rials a year ago. Its shares closed on Thursday at 29.95 rials.