Saudi Arabia set to raise US$10-$20b in Aramco stock sale: WSJ
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The news: The world's largest oil company, Saudi Aramco, is set to sell USD10-20 billion ($15-$30 billion) worth of stock in a long awaited offering, according to unnamed sources cited by the Wall Street Journal.
The numbers: Saudi Arabia owns over 82% of the Saudi Arabian Oil Co, known as Aramco, with the kingdom’s Public Investment Fund owning a further 16%. The remaining portion is owned by public investors. Aramco went public in 2019 in the world’s largest IPO to date, raising USD29.4 billion. If Aramco sells USD20 billion in the upcoming offering it would also be ranked near the top of record stock sales.
The context: The Aramco stock sale has been toyed with by Crown Prince Mohammad bin Salman for years, and has delayed the decision a number of times over uncertain economic circumstances. However, sources tell the WSJ that as markets reach record highs and with benchmark oil prices sitting comfortably over USD80 a barrel, the time appears right.
The minority share sale is expected to be marketed to both domestic and international investors, and could come as early as June.
The source: Wall Street Journal
