Saudi Aramco Planning A Large-Scale Share Sale Soon
Date
5/28/2024 1:08:57 AM
(MENAFN- AzerNews) By Alimat Aliyeva
Saudi Arabia is planning to sell shares of the energy giantAramco for several billion dollars, Azernews reports.
"One of the largest share deals in the region will take place inJune. The placement could raise about $10 billion. Preparations areongoing, and details may still change," the agency said.
According to him, the shares will be registered in Riyadh, andit will be a fully market placement, not an accelerated sale withina few days. It is assumed that the deal will be prepared by banksCitigroup, Goldman Sachs and HSBC.
Recall that Saudi Arabia conducted the Aramco IPO in 2019,placing shares worth about $ 30 billion at that time.
The Saudi government directly owns about 90% of Aramco shares, andanother 8% of the company's shares are managed by the sovereignwealth fund Public Investment Fund (PIF).
In 2023, Saudi Aramco shares rose to a record 38.64 riyals($10.3 at the current exchange rate). This is almost 21% higherthan the IPO price (32 riyals). At the auction on Monday, May 27,the share price reached 29.7 riyals - 0.8% more than it was at theclosing of the exchange on May 24.
In the first quarter of 2024, Saudi Aramco's net profit, despitethe rise in oil prices and lower taxes, decreased by 14%year-on-year to $27.77 billion. This is less than the consensusforecast of analysts surveyed by Visible Alpha, MarketWatch wrote flow from operating activities also fell by 15%, failing tomeet market expectations.
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