MEOG: Riyadh plans Aramco share sale

Saudi Arabia is preparing a multi-billion-dollar share sale in energy giant Aramco, potentially launching as soon as June, according to sources quoted by Reuters. The offering could raise around $10bn, making it one of the region’s largest stock deals. The sources, who requested anonymity, noted that preparations are ongoing and details may still change.

The shares will be listed in Riyadh, with a fully marketed offering rather than an accelerated sale. “Decisions about share sales are matters for our shareholders and are not something we are able to comment on,” Aramco said. The Saudi government’s communication office did not immediately respond to a request for comment.

In February, banks were reported to have been lined up to support the share sale, including Citigroup, Goldman Sachs, and HSBC, with Bloomberg estimating that the offering could generate around $20bn. At a current valuation of around $1.98 trillion, this suggests that roughly 1% of the company could be listed.

This sale is part of Saudi Arabia’s Vision 2030, an economic transition plan focusing on expanding the private sector and promoting non-oil growth. The Saudi government, which owns 90% of Aramco, heavily relies on the company’s payouts.