Saudi Aramco planning a large-scale share sale soon

By Alimat Aliyeva

Saudi Arabia is planning to sell shares of the energy giant Aramco for several billion dollars, Azernews reports.

"One of the largest share deals in the region will take place in June. The placement could raise about $10 billion. Preparations are ongoing, and details may still change," the agency said.

According to him, the shares will be registered in Riyadh, and it will be a fully market placement, not an accelerated sale within a few days. It is assumed that the deal will be prepared by banks Citigroup, Goldman Sachs and HSBC.

Recall that Saudi Arabia conducted the Aramco IPO in 2019, placing shares worth about $ 30 billion at that time.
The Saudi government directly owns about 90% of Aramco shares, and another 8% of the company's shares are managed by the sovereign wealth fund Public Investment Fund (PIF).

In 2023, Saudi Aramco shares rose to a record 38.64 riyals ($10.3 at the current exchange rate). This is almost 21% higher than the IPO price (32 riyals). At the auction on Monday, May 27, the share price reached 29.7 riyals — 0.8% more than it was at the closing of the exchange on May 24.

In the first quarter of 2024, Saudi Aramco's net profit, despite the rise in oil prices and lower taxes, decreased by 14% year—on-year to $27.77 billion. This is less than the consensus forecast of analysts surveyed by Visible Alpha, MarketWatch wrote. Cash flow from operating activities also fell by 15%, failing to meet market expectations.