Saudi Aramco, Saudi Arabia’s state-backed oil giant, is planning to sell 2.5% of its shares on the stock exchange in 2022, The Wall Street Journal reported.
The authorities of the country intend to list part of shares in Aramco, the world’s most valuable oil company.
According to the Journal’s sources, the management of the oil producer, which is 98.5% government-owned, is considering a secondary listing, possibly in London, Singapore, or on one of the local stock exchanges.
Reportedly, Saudi Aramco is targeting a stake sale of as much as $50 billion, which would be 2.5% of the firm. In case of a successful deal, funds will be channeled to the public treasury and the state budget. Experts believe that the secondary public offering will contribute to Saudi Arabia's plan to diversify its economy.
Notably, the oil giant went public on the Riyadh stock exchange in late 2019. The company sold 1.5% of its shares owned by the government. As a result, the listing raised $29.4 billion. It was the biggest IPO in the history of Saudi Arabia. The current listing scheduled to be completed in 2022 may well surpass the last one.
