Saudi Aramco is pushing ahead with plans for an initial public offering of its energy-trading business. It is targeting a listing in Riyadh for the end of the year or early 2023. The world's top oil producer is adding more banks to the IPO, which could value the unit at more than $30 billion.
Executives at the world's most valuable oil company have held discussions internally and with outside advisers about selling additional shares on the Riyadh stock exchange and a secondary listing, possibly in London, Singapore, or other venues. The company set the previous record for the world's largest initial public offering in 2019 when it raised $29.4 billion on the Tadawul or the Saudi stock exchange.
Why it matters
Saudi Aramco is expected to offload up to 30% of its trading arm, which aligns with Saudi Arabia’s long-term strategy to raise money from non-core assets and continue diversifying its economy. The Saudi giant recently surpassed US-based technology giant Apple to become the world’s most-valued company with a market capitalization of almost $2.43 trillion.