Saudi Arabia Transfers 4 Percent Saudi Aramco Stake to Sanabil Investments Unit

Posted on 04/16/2023

Saudi Arabia Crown Prince Mohammed bin Salman announced the transfer of a 4% stake of the oil giant Saudi Aramco to a subsidiary of the kingdom’s sovereign wealth fund. The 4% stake was transferred to Saudi Arabian Investment Company (Sanabil Investments), which is under the Public Investment Fund of Saudi Arabia (PIF).

“The transfer will also solidify PIF’s strong financial position and credit rating,” the statement about the deal said.

“This is a private transfer between the state and Sanabil, and the company is not a party to the transfer and did not enter into any agreements or pay or receive any proceeds from the transfer,” Saudi Aramco said in a stock market filing.

The Saudi government remains the Saudi Aramco’s largest shareholder, with over 90% of its stock.

In February 2022, another 4% of Aramco had been transferred to the PIF. Just 1.73% of Saudi Aramco is traded on Saudi Arabia’s Tadawul stock market since the company’s 2019 initial public offering.

Saudi Aramco reported earning a US$ 161 billion profit in 2022, claiming the highest-ever recorded by a publicly listed company.

Get News, People, and Transactions, Delivered to Your Inbox