Saudi Arabia is planning a multi-billion-dollar share sale in energy giant Aramco (TADAWUL: 2222) as soon as June, potentially raising around $10 billion. This could become one of the region's biggest stock deals. The shares will be listed in Riyadh, and it will be a fully marketed offering rather than an accelerated sale. The details are still being finalized, according to sources who spoke on condition of anonymity.

Background and Market Context

Aramco, the world's largest oil company, remains a cornerstone of Saudi Arabia's economic strategy. The Saudi government, which holds a 90% stake in Aramco, heavily relies on its payouts. Aramco expects to pay $31 billion in dividends despite reporting lower earnings for Q1 2024 due to reduced oil prices and volumes.

Economic Transition: Vision 2030

The share sale aligns with Saudi Arabia's Vision 2030, an ambitious plan to diversify the economy and reduce dependency on oil revenues. Expanding the private sector and fostering non-oil growth are key objectives of this initiative.

Stock Performance and Prospects

Since its IPO in 2019, Aramco shares have experienced significant volatility, with an initial public offering price of 32 riyals peaking at 38.64 riyals last year. The shares closed at 29.95 riyals on Thursday.

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