Saudi Aramco eyes $50 billion stock sell-off in fresh listing

• The latest share sale could raise more money than Aramco’s 2019 offering

• The company intends to raise capital to invest in projects other than oil and gas

Saudi Aramco is planning to list more shares, worth as much as $50 billion on the Riyadh stock exchange and put up a secondary listing, possibly in London, Singapore, or other venues.

The news, first reported by Wall Street Journal stated that the latest listing of shares would be the largest in the history of capital markets and could be difficult to pull off. 

Also Read: Saudi Arabia minister says battle against climate change should not shun any particular energy source

The oil and gas giant Aramco was listed in Riyadh in December 2019, on the Tadawul, or the Saudi stock exchange. It had raised $29.4 billion then, setting the record for the world’s largest initial public offering (IPO), and currently has a market value of $1.97 trillion.

Aramco has been selling off large chunks of the company to raise capital to invest in projects apart from oil and natural gas. 

Rising oil prices have fueled inflation around the world, including in the U.S. and Europe, due to soaring energy costs. Crude prices have jumped to seven-year highs as several OPEC+ members have been unable to meet their share of output as global demand picks up.

Aramco is the world’s fourth most-profitable public company after Apple Inc. (NASDAQ: AAPL) Google parent Alphabet Inc. (NASDAQ: GOOG) and Microsoft Corp. (NASDAQ: MSFT)

The company has been wringing value from other parts of its energy infrastructure. In December it agreed to sell a 49% stake in its natural-gas pipeline business to a consortium led by BlackRock Inc. and Saudi-backed Hassana Investment Co. for $15.5 billion.

Also Read: Saudi Arabia in talks to sell 1% Aramco stakes

Picture Credits: WSJ

With inputs from WSJ