ALBAWABA - The Saudi Arabian government has filed paperwork for selling a new portion of the national oil company Aramco, as reported by Reuters, potentially to generate up to $13.1 billion, with 1.545 billion offered shares valued at $12 billion in the oil giant’s second listing.
Aramco CEO Amin Nasser told reporters during a conference call after the news, saying “The offering provides us with an opportunity to broaden the shareholder base amongst both Saudi and international investors,” as Saudi Arabia pushes to diversify income by 2030.
According to Aramco, the sale on the local exchange, which accounts for around 0.64 percent of the company's total valuation, will start on Sunday, marking the company's second listing after its $25.6 billion initial public offering (IPO) in December 2019, which AFP reports as the largest float in history.
After failing to meet the desired goal for foreign direct investment, Hasan Alhasan, senior fellow at the International Institute for Strategic Studies noted that the kingdom is turning to debt issuance and the sale of Aramco stock in order to close its $21 billion budget shortfall, according to Reuters.
Alhasan added that “the kingdom is likely to continue redirecting capital to other sectors including renewable energy, technology, tourism, logistics and manufacturing, which Riyadh hopes will constitute sources of long-term economic growth.”
“This transaction provides an opportunity for current and new investors to build a sizable position in Saudi Aramco at a price where we believe the company offers attractive value and growth to our shareholders,” added CEO Nasser.
