Anyone looking to purchase a piece of Saudi Aramco? According to sources, the world’s most valuable oil company is formulating a plan to list more of its shares on the Riyadh stock exchange, as well as a second possible listing in London and Singapore.
The Kingdom of Saudi Arabia has made several attempts at selling off pieces of Aramco over the years, with only one of them being successful. In 2019, Aramco listed around 1.5% of its $1.7t market capitalization in a domestic-only IPO. That listing and the one currently being planned are attempts to cash in on the country’s substantial oil assets to generate proceeds towards investment in non-energy sectors of the economy.
With oil prices hitting a seven-year high of $92 a barrel, it’s as good a time as any to cash in. Saudi Aramco also recently announced it will be raising its prices for its Asian, American, and European customers.
Why it matters
If Saudi Aramco is able to pull off the proposed listing, it will break its own record for the largest-ever IPO set in 2019. The offering could go for as much as $50b, or around 2.5% of Aramco's current valuation.