Saudi Arabia is gearing up for a major secondary offering of shares in state-owned oil giant Saudi Aramco, potentially launching as early as this Sunday. This comes nearly five years after Aramco’s record-breaking $29.4 billion initial public offering (IPO) on the Saudi stock exchange.

According to Bloomberg, the offering has already garnered informal interest exceeding $10 billion from investors in the Middle East and Europe. To gauge final demand, the kingdom plans to conduct a book-building process until next Thursday, sources familiar with the matter revealed.

The share price is expected to be offered at a discount of up to 10% compared to Aramco’s current trading price, though this could be adjusted based on investor demand. This aligns with recent secondary offerings in Saudi companies like stc Group and Tadawul Group Holding, the operator of the Saudi stock exchange.

Several international banks, including Citigroup, Goldman Sachs, and HSBC, have been chosen to handle the deal. Local financial institutions, including Saudi National Bank, are also expected to participate. Moelis & Company is advising on the selection of underwriters.

The proceeds from the sale will fund major initiatives outlined in Saudi Arabia’s Vision 2030 economic diversification plan.

Despite a recent decline in profits due to lower oil prices and volumes, Aramco remains a significant revenue source for the Saudi government. The company previously boosted its annual dividend payout to nearly $98 billion in 2023, up from $75 billion. It anticipates further dividend payouts reaching $124.3 billion this year.

According to a Reuters report, Aramco introduced a special performance-based dividend program in 2023, providing increased cash flow to the government and attracting new investors. Notably, the company offered a hefty $31 billion in dividends for the first quarter of 2024, a 59% increase compared to last year.

While Aramco’s first-quarter net income dipped 14% to $27.3 billion compared to the previous year – in line with analyst expectations – the company remains a major player in the global energy market.