Russia eyes Aramco IPO involvement

Sovereign wealth fund preparing to buy into Saudi oil giant.

Saudi Aramco's IPO is attracting interest from international stock exchanges and investment groups.
Saudi Aramco's IPO is attracting interest from international stock exchanges and investment groups.

The Russian Direct Investment Fund (RDIF) is to establish a "significant" pool of potential investors for the anticipated $100bn initial public offering (IPO) by Saudi Aramco, according to Reuters.

The RDIF’s head, Kirill Dmitriev, who previously stated Russian pension funds were weighing up the IPO, has predicted strong interest from Russia’s financial sector. "We see a great interest from the Russian banks, from Russian investment banks and other Russian investors," Dmitriev said at a conference in Sochi.

"That's why we believe that we will be able to set up a significant consortium for these investments."

Dmitriev revealed the sovereign wealth fund has teamed up with Chinese investors to facilitate their involvement in the IPO, which could see the oil giant valued at around $2trn. Aramco is looking to sell off a 5% stake.

Sources told Reuters in 2017 that Chinese state-owned oil firms were keen to become substantial investors in the IPO.

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