Saudi Aramco considers selling $50 billion in shares - The Express Tribune
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Saudi Aramco considers selling $50 billion in shares
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"articleBody": "Saudi Aramco is considering selling a stake worth as much as $50 billion through a secondary share offering on the Riyadh bourse after consultations with advisers, the Wall Street Journal reported on Friday.
The sale could happen before the end of the year, the report said, adding that Aramco has been &ldquo;sounding out&rdquo; potential investors, such as other multinational oil companies and sovereign-wealth funds, about participating in the deal.
The Kingdom has decided to host any new Aramco offering on the Riyadh exchange to avoid legal risks associated with an international listing, the report said, citing Saudi officials and other people familiar with the plan.
Read Saudi Aramco invests in two Chinese refineries
Saudi Aramco declined to comment when contacted on Friday.
Saudi Aramco is the world&rsquo;s biggest oil company, with a market value of $2.25 trillion. Its shares have risen 19.6% this year.
The company completed the world&rsquo;s largest initial public offering in late 2019, raising $25.6 billion and later selling more shares to raise the total to $29.4 billion.
Saudi Arabia had planned in addition to sell Aramco shares worth up to $50 billion last year, but decided market conditions were unfavourable, the Journal said.
Saudi Arabia&rsquo;s Crown Prince Mohammed bin Salman, the kingdom&rsquo;s de facto ruler, in January 2021 said that Saudi Aramco would sell more shares, with proceeds used bolster the country&rsquo;s main sovereign wealth fund.
&ldquo;There will be Aramco share offerings coming in the coming years, and this cash will be transferred to the Public Investment Fund,&rdquo; said Prince Mohammed, speaking at the kingdom&rsquo;s Future Investment Initiative conference.
The Public Investment Fund, which sometimes receives government injections of cash, spent 120 billion riyals ($32.00 billion) domestically last year as it sought to implement an ambitious economic agenda to wean the economy off oil by building new industries.
The fund, which manages about $700 billion in assets, made a total comprehensive loss of 58.545 billion riyals ($15.61 billion) last year.
Published in The Express Tribune, September 3rd, 2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
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<h1>Saudi Aramco considers selling $50 billion in shares</h1>
<p class="story-excerpt">WSJ reports sale could happen before the end of the year
</p>
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<span><a href="https://tribune.com.pk/author/3831/afp-reuters">REUTERS</a> </span>
<span>September 03, 2023</span>
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<p><span style="color:black">Saudi Aramco is considering selling a stake worth as much as $50 billion through a secondary share offering on the Riyadh bourse after consultations with advisers, the Wall Street Journal reported on Friday.</span></p>
<p><span style="color:black">The sale could happen before the end of the year, the report said, adding that Aramco has been “sounding out” potential investors, such as other multinational oil companies and sovereign-wealth funds, about participating in the deal.</span></p>
<p><span style="color:black">The Kingdom has decided to host any new Aramco offering on the Riyadh exchange to avoid legal risks associated with an international listing, the report said, citing Saudi officials and other people familiar with the plan.</span></p>
<p><strong>Read </strong><a rel="nofollow" href="https://tribune.com.pk/story/2408453/saudi-aramco-invests-in-two-chines… Aramco invests in two Chinese refineries</a></p>
<p><span style="color:black">Saudi Aramco declined to comment when contacted on Friday.</span></p>
<p><span style="color:black">Saudi Aramco is the world’s biggest oil company, with a market value of $2.25 trillion. Its shares have risen 19.6% this year.</span></p><div id="div-gpt-story-2"><script>googletag.cmd.push(function() { googletag.display('div-gpt-story-2'); });</script></div></p>
<p><span style="color:black">The company completed the world’s largest initial public offering in late 2019, raising $25.6 billion and later selling more shares to raise the total to $29.4 billion.</span></p>
<p><span style="color:black">Saudi Arabia had planned in addition to sell Aramco shares worth up to $50 billion last year, but decided market conditions were unfavourable, the Journal said.</span></p>
<p><span style="color:black">Saudi Arabia’s Crown Prince Mohammed bin Salman, the kingdom’s de facto ruler, in January 2021 said that Saudi Aramco would sell more shares, with proceeds used bolster the country’s main sovereign wealth fund.</span></p>
<p><span style="color:black">“There will be Aramco share offerings coming in the coming years, and this cash will be transferred to the Public Investment Fund,” said Prince Mohammed, speaking at the kingdom’s Future Investment Initiative conference.</span></p>
<p><span style="color:black">The Public Investment Fund, which sometimes receives government injections of cash, spent 120 billion riyals ($32.00 billion) domestically last year as it sought to implement an ambitious economic agenda to wean the economy off oil by building new industries.</span></p>
<p><span style="color:black">The fund, which manages about $700 billion in assets, made a total comprehensive loss of 58.545 billion riyals ($15.61 billion) last year. </span></p>
<p><em><span style="background-color:white">Published in The Express Tribune, September 3<sup>rd</sup>, 2023.</span></em></p>
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