Page 9 - MEOG Week 07 2022

MEOG FINANCE & INVESTMENT MEOG

Aramco shares

transferred to PIF

SAUDI ARABIA CROWN Prince Mohammed bin Salman this coming decade while creating 1.8mn direct and
week transferred 4% of Saudi Aramco’s shares to indirect jobs by 2025 and Prince Mohammed
the Kingdom’s sovereign wealth fund, the Public said that the investment level would reach SAR1
Investment Fund (PIF). trillion ($267bn) by that date.
Following the transfer, the Saudi state holds In a regulatory filing on the TASI, Aramco
94.3% of Aramco, the PIF 4% and the remaining said: “This is a private transfer between the State
1.7% was sold during the company’s 2019 initial and PIF, and the Company is not a party to the
public offering on the local stock exchange, Tad- transfer and did not enter into any agreements
awul All Share Index (TASI). or pay or receive any proceeds from the transfer,”
Based on the company’s current valuation of adding that the “the shares transferred will rank
around $2 trillion, the shares are estimated to be equally alongside other existing ordinary shares.”
worth $80bn and will yield the PIF an annual Seeking to dispel any potential market con-
dividend of roughly $3bn until at least 2024. cerns, the company said that the transfer would
The Saudi Press Agency quoted the Crown not have any impact on its operations, strategy,
Prince as saying that the share transfer would dividend distribution policy or governance
support the Kingdom’s long-term strategy of framework.
restructuring the Saudi economy in line with The move comes a week after reports said that
Vision 2030. He reiterated the aim of increas- Aramco is working with advisers to establish a
ing the PIF’s assets under management (AUM) plan to float additional shares on TASI and a
to SAR4 trillion ($1.07 trillion) by 2025, with potential secondary listing in London, Singapore
the transfer taking the current level to around or another international exchange.
$560bn. The PIF’s AUM is expected to reach While the discussions remain in a prelim-
SAR7.5 trillion ($2 trillion) by the end of the inary stage, one source told Dow Jones that
decade. around 2.5% of the company’s shares could be
The PIF has plans in place that will see it spend sold. With Aramco currently valued at around
SAR3 trillion ($800bn) into new sectors over the $1.97 trillion, this could raise almost $50bn.™

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