01 Jun 2024
Saudi Arabia is selling a 0.64 percent stake in oil giant Aramco as the Kingdom pushes ahead with Saudi Crown Prince Mohammed bin Salman’s plan to diversify the economy.
Saudi Arabia is offering 1.545 billion Aramco shares and the offering period will commence on June 2.
The price range is expected to be between SAR 26.70 and SAR 29.00 per share, as per the statement on Thursday.
The offering is the culmination of a years-long effort to sell another chunk in one of the world’s most valuable companies after its record-setting IPO in 2019.
Aramco shares closed 0.17 percent lower on Thursday at 29.1 riyals ($7.76) to give it a market capitalization of about $1.87 trillion. Its IPO price valued it at $1.7 trillion, but shares traded 10 percent higher on their debut, roughly in line with its current valuation.
The company lifted dividends to almost $98 billion in 2023 from the $75 billion it had been paying annually, despite profit having dropped by nearly a quarter. It expects an outlay of $124.3 billion this year.
Aramco has also invested in refineries and petrochemical projects in China and elsewhere, expanded its retail and trading businesses, and sharpened its focus on gas, making its first foray into liquefied natural gas abroad last year.