Saudi Arabia transfers 4% of Aramco stake to state wealth fund
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Saudi Arabia transfers 4% of Aramco stake to state wealth fund

Saudi Arabia transfers 4% of Aramco stake to state wealth fund

The government will still be the largest shareholder in Aramco

Saudi Arabia transferred 4 per cent of Aramco to the kingdom’s sovereign wealth fund amid reports about preliminary talks to offer a fresh stake in the oil giant that could raise more money than its landmark listing two years ago.

The transfer of shares to the Public Investment Fund is aimed at helping to restructure the country’s economy, state-run Saudi Press Agency reported, citing Crown Prince Mohammed bin Salman.

It’d also support the wealth fund’s plans to raise its assets under management to about SAR4tn ($1tn) by the end of 2025, it said.

The government will still be the largest shareholder in Aramco, with more than a 94 per cent stake after the transfer.

The move follows people familiar with the matter saying last week that the government has held talks with advisers on the potential second offering, which could bring in more than than its initial IPO.

Aramco’s 2019 initial public offering – in which it sold about 2 per cent of its stock on the Riyadh bourse – raised almost $30bn.

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