Aramco's next multi-billion dollar public offering will be one of the largest in the world, according to Bloomberg. It is planned to study the possibility of a subsequent offering of the company's shares on the stock exchange in Riyadh.
Crown Prince Mohammad bin Salman previously announced the possibility of selling more shares in the state oil giant in the future, with the aim of transferring the proceeds to the kingdom's sovereign wealth fund. Even a 1% offer could raise over $20 billion.
The move is part of Saudi Arabia's investment plan to diversify the local economy. The government currently owns about 90% of Aramco, with another 8% owned by the sovereign wealth fund.
Shares of Aramco on the Riyadh exchange fell 4.7% on Tuesday, and the company's total value is about $2.1 trillion. Aramco shares have outperformed Western oil giants this year, including Exxon Mobil Corp (NYSE:XOM).
Aramco's forthcoming SPO could attract new investors following an increase in base dividends and announcements of additional shareholder payouts from free cash.
During its initial public offering (IPO) in 2019, Aramco raised almost $30 billion, despite the fact that local companies and funds were the main investors.