Saudi Aramco’s $10bn share sale slated for next month

Reuters

Saudi Aramco’s anticipated share sale is expected to take place next month, according to a media report.

The offering is projected to raise nearly $10 billion and will be listed on the local stock exchange, Reuters reported, citing unnamed informed sources. 

The sources said details may still change, but the process continues.

In September 2023, The Wall Street Journal reported that Aramco planned to sell a stake valued at $50 billion through a secondary share offering on the Saudi stock exchange.

Crown Prince Mohammed bin Salman said in 2021 that Saudi Aramco was in talks to sell more shares and the proceeds would be used to bolster the kingdom’s sovereign Public Investment Fund (PIF).

“There will be Aramco share offerings coming in the coming years, and this cash will be transferred to the PIF,” Prince Mohammed said at the Future Investment Initiative conference.

This month the state-owned energy major announced a $31 billion dividend payout in the first quarter, with total dividends expected to reach more than $124 billion in 2024.

Aramco’s first-quarter 2024 net profit fell 14 percent to over $27 billion due to lower oil prices and volumes.

The government holds an 82 percent stake in Aramco, and dividends constitute a significant part of its revenue. The PIF, the kingdom’s sovereign wealth fund, owns 16 percent, while 2 percent is publicly traded.

Aramco has postponed plans to increase its output capacity from 12 million barrels to 13 million barrels per day. It aims to increase its gas output by 60 percent.

Meanwhile, Aramco plans to acquire a minority stake in the wind farms and solar plants of Spain’s Repsol, Reuters reported, quoting unnamed sources.

Repsol Renewables is worth close to €6 billion (over $6 billion), including debt, UBS said in April.