Saudi Arabia is reportedly planning for a multi-billion-dollar share sale in the energy firm Aramco. The potential deal is slated to occur as early as June, as per sources cited in a report by Reuters.
The deal is expected to generate nearly $10 billion. While talks around the same are still underway, it is anticipated that the details could still go through some modifications.
As per the report, the shares are set to be listed in Riyadh, with the offering being fully marketed rather than expedited over a few days.
"Decisions about share sales are matters for our shareholders and are not something we are able to comment on," the energy giant stated. The Saudi government continues to hold a major 90 per cent stake in Aramco. Banks such as Citigroup, Goldman Sachs, and HSBC were previously selected to oversee the sale.
Saudi Arabia is undergoing an economic transformation under Vision 2030. Due to this, the country is largely focusing on the growth of its private sector and non-oil industries for future development.
Earlier this month, the energy giant announced that it was expecting to pay $31 billion in dividends despite reporting reduced earnings for the first quarter. The missed figures were largely due to lower oil prices and sales volumes.
Since its initial public offering (IPO) in 2019, which was the largest IPO globally, Aramco's share price has climbed from the IPO price of 32 riyals to a peak of 38.64 riyals a year ago.
It is also worth noting that as the world is shifting to green energy, the Gulf nation is also trying to follow a similar trail. The country has been heavily investing in renewable energy projects since last year.
