How much does the Saudi government own from Aramco shares?
When did Aramco launch its first IPO?
The chairman of Saudi Aramco, Yasser Al-Rumayyan, said that the kingdom’s government remains committed to selling more shares than its stake in the state-owned oil giant.
Al-Rumayyan told the “Sera Wake” energy conference, on Tuesday, that “as soon as we see that market conditions are improving, and as soon as we see greater openness to the appetites of various investment institutions and investors, we will definitely study selling more shares of the Saudi government,” indicating that “the decision is in the hands of the Saudi government and not In the hands of the Aramco Board of Directors. ”
The Saudi government owns a 98% stake in Aramco, following an initial public offering on the Saudi stock market in late 2019.
On January 25, 2021, Al-Rumayyan said that the kingdom is considering listing more Aramco shares if the valuation is correct.
“Aramco is working on a huge program to structure and sell assets,” Al-Rumayyan added, adding that, “Historically, Aramco does everything on its own, as it has its airports, its own aircraft fleets, and its own pipelines as well.”
He said, “Now if it makes sense for us to sell some of these assets, we will certainly do so … and this process can include anything except for the main operations.”
By the end of 2019, the Saudi government offered about 1.73% of Aramco’s shares, becoming the largest IPO in the world after collecting $ 29.4 billion; The initial offering was 1.5% and was subsequently raised.
Saudi Arabia offered the company’s share based on a valuation of $ 1.7 trillion, which was higher than international valuations at the time. The company’s market value is currently $ 1.86 trillion, according to Sunday’s close.
Aramco produces 10 million barrels per day in normal conditions, far from any international agreements to reduce production, while the cost of producing one barrel is $ 2.5.