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Saudi Arabia Aims To Sell Aramco Shares As Early As June, Say Insiders

Saudi Arabia Aims To Sell Aramco Shares As Early As June, Say Insiders
Saudi Arabia is preparing to sell billions of dollars' worth of shares in the energy giant Aramco as early as June in what would be one of the largest stock sales in the area, according to a Reuters report based on information from two persons familiar with the situation.
One of the individuals stated that the IPO may raise about $10 billion. The sources, who spoke on condition of anonymity since the subject is private, stated that the preparations are still in progress and that the specifics might yet alter.
They said that instead of a rushed sale over a few days, the shares will be extensively promoted and listed in Riyadh. When contacted for comment, Aramco and the government's information office did not reply right away.
According to Reuters, banks including Citigroup, Goldman Sachs, and HSBC were initially scheduled to oversee the transaction.
Vision 2030, Saudi Arabia's economic transformation initiative, centres the country's future growth on an expanding private sector and non-oil growth. With a 90% stake, the Saudi government continues to be Aramco's largest shareholder and is largely dependent on its dividends.
Aramco stated earlier this month that it anticipates paying $31 billion in dividends, despite posting reduced first-quarter profitability due to lower oil prices and sales volumes.
With the world's largest initial public offering (IPO) in 2019, Aramco's shares have increased from their IPO price of 32 riyals to a peak of 38.64 riyals one year later. On Thursday, its shares ended at 29.95 riyals.

Christopher J. Mitchell

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