The International Oil Price website said that the lack of transparency about the work of the giant Saudi oil company Aramco prevents its listing on the stock exchange.
The site stated that there is still some scepticism about Aramco’s commercial listing on the stock exchange, as the process is complicated because the issue of transparency is of great concern. Aramco’s strategies and potential production volumes are closely guarded secrets.
The site indicated that Aramco is trying to convert one of its assets into cash. It is currently discussing the option of listing the Aramco trading division for the subscription, which could bring about $30 billion.
Although Aramco announced record net profits and cash flow in recent days, the Saudi government needs more liquidity to support the Saudi Investment Fund with cash.
Bloomberg said that the Saudi government wants to sell 30% of its stake in the famous Aramco Trading Company, estimated at $30 billion.
The agency stated that it had obtained “important leaks” confirming the start of the Riyadh sale of parts of its stake in the company, despite the rise in oil prices globally.
According to the agency, the Saudi authorities are working with banks, including Goldman Sachs, Morgan Stanley and JPMorgan Chase & Co, on the upcoming listing of Aramco Trading.
It was previously revealed that the Saudi Investment Fund, headed by Crown Prince Mohammed bin Salman, is considering selling $90 billion of the Aramco stakes.
It is believed that Bin Salman’s plans to sell shares in Aramco worth $50 billion will create problems similar to the problems the company faced in the first IPO.
Aramco will face the obstacle of not being transparent about its production capacity and its role as a source of financing for the Saudi government only. Bin Salman did not achieve any of his goals in the first Aramco shares; He did not sell 5% of the company.
Contrary to what was promoted by Mohammed bin Salman, the company’s value was not estimated at $ 2 trillion, and it was not listed on any international stock exchange.
It is noted that international investors are concerned about Saudi Arabia’s continued use of Aramco as a tool and source of financing for Ibn Salman’s projects that have nothing to do with its core business of oil production.
According to the Bloomberg agency, the fund is studying its options first, as Aramco seeks to obtain funds to pursue its ambitious investment plans.
The fund currently owns about four per cent of Aramco’s shares and invited advisors to offer options.
Current avenues include the total or partial sale of the holding or capital increase by pledging the shares in exchange for convertible loans or debt instruments.
Aramco is the world’s largest oil producer, with about $2 trillion market value. The crude oil business market represents the head of the Saudi Organization of Petroleum Exporting Countries and several financial goals.
Aramco produces 10 million barrels per day of crude oil and 13% of the total crude oil consumed globally. However, it plays a much more significant role in the markets due to its export capacity.