#SaudiArabia plans Aramco share sale as soon as June, sources say

Saudi Arabia plans Aramco share sale as soon as June, sources say

Saudi Arabia is planning a multi-billion-dollar share sale in energy giant Aramco as soon as June in what would be one of the region's biggest stock deals, two people familiar with the matter said.

The offering could raise around $10 billion, one of the people said. The preparations are ongoing and the details could still change, the sources said, who were speaking on condition of anonymity because the matter is private.

The shares will be listed in Riyadh and it will be a fully marketed offering rather than an accelerated sale over a few days, they added.

The government's communication office and Aramco did not immediately respond to a request for comment.

Banks including Citigroup, Goldman Sachs and HSBC had previously been lined up to manage the sale, Reuters has reported.

Saudi Arabia has embarked on an economic transition known as Vision 2030, which puts an expanded private sector and non-oil growth at the center of its future development.

The Saudi government remains overwhelmingly Aramco's biggest shareholder, with a 90% stake, and heavily relies on its payouts.

Aramco expects to pay $31 billion in dividends, the company said earlier this month, despite reporting lower earnings for the first quarter amid lower oil prices and volumes sold.

Since its initial public offering in 2019, the world's biggest IPO, Aramco shares have risen from an IPO price of 32 riyals to a high of 38.64 riyals a year ago. Its shares closed at 29.95 riyals on Thursday.

Moody's raises #SaudiArabia's local and foreign currency rating to 'Aa1' | Reuters

Moody's raises Saudi Arabia's local and foreign currency rating to 'Aa1' | Reuters

Credit rating agency Moody's raised Saudi Arabia's local and foreign currency rating to 'Aa1' from 'Aa2' on Friday, citing increased predictability of the government's decision-making processes affecting the private sector.

For the world's largest crude exporter, non-oil economic growth is a top priority and the government has accelerated policies to drive investment into tourism and expand the private sector.

The change in rating reflects, "increased predictability of policies and decision-making processes affecting non-government issuers given institutional improvements," the ratings agency said in a statement.

The "zero-notch gap" between rating for the foreign currency and the local currency is aided by the central bank's very large foreign-exchange reserve and reflects very low transfer and convertibility risks, Moody's added.

It, however, attributed reliance on a single revenue source for both the private and the government sector and challenging regional geopolitical dynamics for the "three-notch gap" between the local-currency rating and the 'A1' sovereign rating.

Fellow rating agency S&P Global in March affirmed Saudi Arabia's sovereign rating and outlook betting on social and economic reforms to improve the country's prospects.