The Saudi government plans a new sale of Aramco shares for 11 billion euros: a bet on diversifying the economy.

The Saudi Arabian government has announced its plan to carry out a second sale of shares of the state-owned oil giant Aramco, with the aim of raising up to 11 billion euros. This measure not only seeks to improve the finances of the Arab country, but also to finance an ambitious investment plan in new technologies, artificial intelligence, tourism, and sports, with the purpose of reducing the economy's dependence on fossil fuels. Specifically, the plan is to sell 0.64% of Aramco's capital to qualified institutional investors, both local and international, at a price ranging between 26.7 and 29 Saudi riyals. In addition, depending on demand, Saudi Arabia is considering the possibility of selling an additional package, which could provide an extra income of 1.1 billion euros. In the best-case scenario, the total proceeds from this operation could exceed 12 billion euros, making it one of the largest placements in history. Aramco, which already holds the record for the largest Initial Public Offering (IPO), with a listing on the domestic stock exchange in Riyadh at the end of 2019, where it raised over 27 billion euros by selling nearly 2% of its capital, is preparing for this new milestone in its history. Aramco's CEO, Amin Nasser, has emphasized that this operation will increase the limited free float and expand the base of international investors. According to Nasser, this share sale, to be carried out between May 22 and June 6, represents an opportunity to attract more investors, noting that Aramco paid out 98 billion dollars in dividends in 2023 and plans to pay 114.61 billion euros this year, which mainly benefits the Saudi state. This step has long been a goal of the Crown Prince and Saudi leader, Mohammed bin Salman, who has finally given the green light to the operation after overcoming obstacles stemming from the pandemic and geopolitical instability. It is important to highlight that Aramco reported a 14.4% decrease in its profits during the first quarter of 2024, reaching 25.32 billion euros, mainly due to lower volumes of oil sold and reduced margins in the refining and chemical business. Despite these results, the group's market capitalization remains around 1.73 trillion euros, demonstrating the strength and relevance of this company in the global energy sector. This new sale of Aramco shares not only represents an opportunity for Saudi Arabia to raise significant funds, but also underscores the country's strategy to diversify its economy beyond hydrocarbons. The focus on innovation and technology, as well as the promotion of tourism and sports, are signs of a Saudi Arabia that is seeking to adapt to the challenges of the 21st century and reduce its dependence on a single source of income.