Energy
Wednesday, May 29th, 2024 4:14 pm EDT
Key Points
- Aramco plans to launch a fresh sale of its stock, aiming to raise between $10 billion and $20 billion, as reported by The Wall Street Journal.
- Following its first-ever public offering in 2019, only 1.5% of Aramco is traded publicly on the Tadawul stock exchange, with the majority owned by the Saudi state and its sovereign wealth fund.
- The previous IPO raised a record $29.4 billion, making it the largest IPO in history, and Aramco holds the title of the world’s largest oil company in terms of both daily crude production and market capitalization.
Saudi Arabia’s state oil company, Aramco, is reportedly planning to launch a fresh sale of its stock, aiming to raise between $10 billion and $20 billion, as per sources familiar with the matter cited by The Wall Street Journal. The majority of Aramco is owned by the Saudi state and its sovereign wealth fund, with only a small fraction, 1.5%, traded publicly on the Tadawul stock exchange since its initial public offering (IPO) in 2019. The IPO raised a staggering $29.4 billion, making it the largest IPO in history. Aramco holds the title of the world’s largest oil company, both in terms of daily crude production and market capitalization. This new stock sale could alleviate some of the financial strain on Saudi Arabia, especially amid its sixth consecutive quarterly budget deficit due to high spending on megaprojects and reduced oil revenues. The kingdom’s budget deficit for the year was forecasted to be 79 billion Saudi riyals ($21 billion), with expected fiscal deficits extending to 2025 and 2026. However, Aramco declined to comment when CNBC reached out, and there’s still the possibility of the stock sale being delayed or canceled, according to The Wall Street Journal.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/05/29/saudi-aramco-to-sell-stock-in-new-offering-report.html
