Aramco could sell more shares to benefit PIF, Saudi crown prince tells FII

Update Aramco could sell more shares to benefit PIF, Saudi crown prince tells FII
Crown Prince Mohammed bin Salman said it would not be difficult for the PIF to raise the value of its assets to SR4 trillion. (Screengrab)
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Updated 29 January 2021

Aramco could sell more shares to benefit PIF, Saudi crown prince tells FII

Aramco could sell more shares to benefit PIF, Saudi crown prince tells FII
  • Second IPO could be reinvested for the benefit of Saudi citizens
  • Mohammed bin Salman: PIF can reach SR4 trillion in assets if it values NEOM and Red Sea Development

DUBAI: Saudi Aramco, the world’s biggest oil company, could launch a second offering of shares to follow the historic initial public offering of 2019, Crown Prince Mohammed bin Salman told the Future Investment Initiative (FII) gathering.

“This will yield a cash flow transferred to the Public Investment Fund (PIF) to be reinvested domestically and internationally for the benefit of Saudi citizens,” the Crown Prince said.

 

 

He gave no indication as to the size of the second potential offering, nor whether it would take place on domestic or international stock markets. Aramco is currently listed on Riyadh’s Tadawul exchange.

Yasir Al-Rumayyan, governor of the PIF, who is also chairman of Aramco, said recently that the oil company could sell more “if market conditions are right.”

He also held out the prospect of Aramco selling other assets or partnering with regional and international partners, as other regional energy companies have done.

The Crown Prince said that PIF could reach its ambitious target of SR4 trillion ($1.07 trillion) assets under management by 2025 by putting a valuation on some of its assets, like NEOM and the Red Sea Development, which are currently rated as zero value by the PIF, as well as by privatizing other companies in which it holds stakes.