Saudi Crown Prince Mohammed bin Salman said Thursday the kingdom will sell more shares of energy giant Aramco in the coming years, following the world’s biggest public listing in 2019.
“There will be Aramco share offerings in the coming years, and this cash will be transferred to… the Public Investment Fund to be re-injected inside and outside the kingdom,” Prince Mohammed told Riyadh’s Future Investment Initiative (FII) conference in a virtual session.
The prince did not specify a timeframe or what portion of the company’s shares will be sold in future offerings.
Aramco was listed on the Saudi bourse in December 2019 following the world’s biggest initial public offering, generating $29.4 billion for 1.7 percent of its shares.
Analysts say sales of additional shares could struggle to generate investor interest amid a downbeat energy market as the coronavirus pandemic saps global energy demand.
Late last year, Aramco posted a 44.6 percent slump in third-quarter profit, as the pandemic weighed on the global demand for crude oil.
Aramco, seen as Saudi Arabia’s cash cow, has revealed consecutive falls in quarterly profits since it began disclosing earnings in 2019, piling pressure on government finances as the kingdom pursues ambitious multi-billion dollar projects to diversify its economy.
Saudi Arabia, the world’s biggest crude exporter, has been hit hard by the double whammy of low prices and sharp cuts in production.
A drop in oil income is expected to hinder Prince Mohammed’s ambitious “Vision 2030” reform programme to overhaul the economy.