Saudi Aramco, also known as Saudi Arabian Oil Company, is considered to be the largest oil producer in the world. The company went public with an IPO back in 2019, and they’re planning a second soon.
So, you’re probably wondering, when is the Saudi Aramco 2nd IPO happening? And what are the expectations for this IPO?
Look no further for the answers! In today’s article, we’ll tell you everything you need to know about the oil giant’s 2nd IPO. Let’s get right into it.
What Is Saudi Aramco Second IPO?
The oil giant is moving forward with its plan for an initial public offering (IPO) of the company’s energy-trading unit. It’s targeting a listing in Riyadh.
The second IPO is expected to occur later this year or in early 2023. However, the decision isn’t final yet. The second IPO could be delayed or even canceled due to market conditions. Unfortunately, Saudi Aramco hasn’t made any comments on this matter so far.
Saudi Aramco is planning to add more banks to the IPO. In this case, the value of the unit could exceed the $30 billion mark.
Saudi Arabia is reportedly willing to sell as much as 2.5% of the oil company in the secondary listing. The company’s executives are still discussing the sale of more shares on the Saudi Tadawul. This could possibly be the company’s largest sale to ever happen.
What Happened in Saudi Aramco’s First IPO?
After postponing the IPO a number of times, Saudi Aramco went public with an IPO in 2019. Setting the record for the world’s largest IPO, Saudi Aramco raised $29.4 billion on the Saudi stock exchange, Tadawul.
That amount was only around 1.5% of the company’s shares. On the other hand, Apple, which is the second most profitable company, has around 84% of its shares held by investors. However, Saudi Arabia limits the ownership of Saudi Aramco to stay in control of the world’s most profitable company.
In fact, the first listing was a scaled-back version of the company’s plans. Originally, Saudi Aramco planned to sell 5% of the company for $100 billion. However, due to governance issues and the price of the shares that put the company’s value at $1.7 trillion, the IPO listed 1.5% of the company.
Is This the Right Time for Saudi Aramco's 2nd IPO?
After the first IPO, the energy markets haven’t been stable, especially since the beginning of the COVID-19 pandemic.
However, with the current international benchmark, Brent Crude, trading at the highest numbers in years, some experts believe that this is the right time to make the big move.
The Saudi Aramco 2nd IPO is expected to occur later this year or in early 2023. However, the company hasn’t confirmed that yet.
The company’s ambition is to sell as much as a $50 billion stake. That amount currently would make up around 2.5% of the company. The company is in talks to sell additional shares on Tadawul. Additionally, there might be a secondary listing, which will possibly happen in London, Singapore, or other venues.
The information in this article is well-researched and factual but it contains opinions also and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article, we are not financial advisors we are journalists. It is recommended that you always consult with a professional before making any investment decisions.