MEOG: Saudi considers selling more Aramco shares

Saudi Arabia is reported to be considering selling up to $50bn worth of shares in majority state-owned oil giant Aramco in a move that could mark the largest share sale in history.

Quoting sources close to proceedings, the Wall Street Journal reported this week that after extensive consultations, the government has opted to host the new Aramco offering on the Riyadh exchange to avoid legal risks associated with an international listing. While the timing of the deal remains some way from being finalised, sources suggested that shares could be offered before the end of the year.

Aramco has been in discussions with potential investors, including multinational oil companies and sovereign wealth funds.

However, the success of this deal remains uncertain given the history of Saudi Arabia’s changing plans regarding Aramco’s listings. In 2019, Aramco set a record with the world’s largest initial public offering (IPO) of 1.5% of the company on the Tadawul, the Saudi stock exchange, which raised $29.4bn.

Last year, the company contemplated additional share sales on the Riyadh exchange and secondary listings in global venues but decided against it owing to unfavourable market conditions. Aramco has not provided a comment on the recent reports, leaving the fate of this massive offering uncertain.