Saudi Arabia is preparing to announce a potential secondary share offering for Aramco, its state-owned oil giant. This offering, if approved by Crown Prince Mohammed bin Salman, could launch as early as Sunday.
The sale represents another attempt to capitalize on Aramco’s value after its record-breaking IPO in 2019. While Aramco’s profits have dipped, it remains a significant cash source for the Saudi government, funding ambitious economic diversification plans. The kingdom hopes to reduce its reliance on oil and create new jobs.
Financial institutions like Citi, Goldman Sachs, and HSBC are reportedly managing the potential sale. This comes as Saudi Arabia faces economic challenges due to lower oil prices and increased spending.
The potential offering highlights Saudi Arabia’s efforts to balance its budget while investing in its future. The success of the Aramco sale could be crucial for these plans.
Source: Reuters