RIYADH (AFP) – Oil giant Saudi Aramco said on Thursday it plans to sell 1.545 billion shares worth more than USD10 billion in one of the biggest such offerings in recent years.
In a statement posted to the Saudi stock exchange, Aramco announced a “secondary public offering of 1.545 billion shares”, with an expected price range between SAR26.70 and SAR29 (USD7 to USD7.70).
The sale on the local bourse, which represents approximately 0.64 per cent of the company’s issued shares, will commence tomorrow, Aramco said.
It is the firm’s second listing after an initial public offering in December 2019 that raised USD25.6 billion, the biggest flotation in history.
Saudi Arabia is the world’s largest crude oil exporter and, before the announcement on Thursday, the government owned about 82 per cent of its shares.
Aramco’s profits are financing Crown Prince Mohammed bin Salman’s sweeping economic and social reform programme known as Vision 2030, which aims to lay the groundwork for an eventual post-oil future.
Flagship projects include NEOM, the futuristic mega-city being built in the desert at a cost of USD500 billion, a giant airport in Riyadh and major tourism and leisure developments.
“The further listing of Aramco will help the government raise funds for Vision 2030 projects that aim to diversify the kingdom’s economy,” said senior research analyst at Energy Intelligence Amena Bakr predicting that more shares will be listed in the coming years.
In January, Aramco said it had been instructed to abandon a plan to increase production capacity to 13 million barrels per day (bpd), up from its current level of 12 million bpd.
