By Chitransh Sharma
Saudi Aramco is mulling an initial public offering of its trading arm amid a boom in oil prices in what could be one of the world’s biggest listings this year.
Aramco, which recently became the world’s most valuable company, could sell a 30% stake in the unit, two of the people said, which would make it one of the world’s biggest IPOs this year.
The trading unit could convey a valuation of tens of billions of dollars, the people said, it could be potentially worth more than $30 billion.
Oil producers have mostly kept their trading units under wraps, wary of telling the unknown of a substantial source of profit. Aramco is still debating the merits of the potential listing.
Details of the offering, including size and timing, could still change. Spokespeople for Aramco, Goldman Sachs, JPMorgan, and Morgan Stanley refused to comment.
With a valuation above $2 trillion, more than five times Exxon Mobil Corp.’s market capitalization, the price of Aramco’s equity may look pricey compared with its rivals.