- Saudi Aramco is contemplating the sale of a stake valued at up to $50 billion, following a decision to postpone a similar plan last year due to unfavorable market conditions. The Kingdom intends to conduct this potential offering on the Riyadh exchange, as revealed by Saudi officials and sources familiar with the matter, in order to mitigate legal risks associated with an international listing.
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Saudi Aramco, the world's largest oil company with a market value of $2.25 trillion, has seen its shares rise by 19.6% this year. In late 2019, the company conducted the world's largest initial public offering, raising $25.6 billion and later expanding it to $29.4 billion.
Why it matters
Aramco recently announced substantial dividends, most of which will go to the government, as it reported a 38% decline in second-quarter profit compared to the previous year. This news underscores the significance of Aramco's role in Saudi Arabia's economic strategy and the ongoing efforts to leverage its value for the country's development.
