The Strategist

Saudi Aramco considers IPO for its retail unit

10/08/2021 - 07:41

Saudi oil and gas company Saudi Aramco is considering an initial public offering (IPO) of its oil retail unit, sources told Bloomberg.

Jason Woodhead via flickr
Jason Woodhead via flickr
"Saudi Aramco is considering selling a stake in its fuel and lubricants retail business and may float shares on the Riyadh Stock Exchange," the sources said.

Negotiations over the initial public offering are at an early stage and the company may refuse to sell, the sources clarified. Saudi Aramco declined to comment to the agency.

Saudi Aramco, Saudi Arabia's national oil and gas company, was founded in 1933. The company has a presence in the world's three major energy markets in Asia, Europe and North America. It employs more than 70,000 people.

Aramco established the Saudi Aramco Retail Company (RetailCo) division in 2018, empowering it to handle the retail business. Going forward, the unit was to develop a retail network for fuel and oils produced by the parent company.

In 2019, Aramco and France's Total signed an agreement to develop a Sahel-branded petrol station network in Saudi Arabia. The joint venture intended to invest $1 billion over the next six years in the Saudi retail fuel market and provide motorists with fuel and related services.