Saudi Arabia mulls selling more shares of Aramco
by ChemOrbis Editorial Team - content@chemorbis.com
According to media sources, Saudi Arabia is considering selling more shares of state-owned oil giant Aramco to raise funds for its economic diversification plan. The move is a part of Saudi Arabia’s Vision 2030 initiative, which aims to reduce oil dependency in economy by expanding the private sector and non-oil growth.
Citigroup, Goldman Sachs, and HSBC are reportedly lined up for the sale. The proposed sale is expected in the second or third quarter of 2024. Bloomberg stated that a potential sale would be worth around $20 billion.
People close to the matter reported that the talks are ongoing, and the details of the sale could change in time. The news has not been confirmed either by the Saudi government or Aramco officials.
Back in late 2019, Aramco made the world’s largest initial public offering, raising $25.6 billion and later selling more shares to raise the total to $29.4 billion. In 2021, Saudi Arabia’s Crown Prince Mohammed bin Salman expressed interest in further share sales of Aramco to support the country’s sovereign wealth fund.
The overwhelmingly largest shareholder of Aramco is the Saudi government with 90.19%. The sovereign Public Investment Fund (PIF) holds a share of 4% while PIF subsidiary Sanabil owns the other 4% share, according to LSEG data.
Recently, the government asked Aramco to maintain its oil production at 12 million barrels/day, lower than expected, which could redirect funds to the treasury.
Citigroup, Goldman Sachs, and HSBC are reportedly lined up for the sale. The proposed sale is expected in the second or third quarter of 2024. Bloomberg stated that a potential sale would be worth around $20 billion.
People close to the matter reported that the talks are ongoing, and the details of the sale could change in time. The news has not been confirmed either by the Saudi government or Aramco officials.
Back in late 2019, Aramco made the world’s largest initial public offering, raising $25.6 billion and later selling more shares to raise the total to $29.4 billion. In 2021, Saudi Arabia’s Crown Prince Mohammed bin Salman expressed interest in further share sales of Aramco to support the country’s sovereign wealth fund.
The overwhelmingly largest shareholder of Aramco is the Saudi government with 90.19%. The sovereign Public Investment Fund (PIF) holds a share of 4% while PIF subsidiary Sanabil owns the other 4% share, according to LSEG data.
Recently, the government asked Aramco to maintain its oil production at 12 million barrels/day, lower than expected, which could redirect funds to the treasury.
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