Saudi Arabia plans to sell part of its stake in "national energy giant" Saudi Aramco as early as June to raise up to $10 billion to advance the government's "Vision 2030" plan, media reported on May 25, citing sources familiar with the matter.

The government implemented the plan against the background that Saudi Arabia is a country whose economy is highly dependent on oil exports, and Saudi economic performance is closely related to oil production and prices. Previously, affected by the continuous oil production reduction policy, Saudi Arabia's GDP continued to decline. As a result, the Saudi government is seeking to transform its economy and is investing heavily in new industries such as electric cars and pharmaceuticals to diversify the economy and reduce its dependence on oil revenues.

Of course, the decline in both oil production and oil prices has affected not only the national economy, but also Aramco's performance. Saudi Aramco earlier this month announced a drop in first-quarter earnings, hurt by lower oil prices and lower sales volumes. And since the world's largest ever IPO in 2019, Aramco's share price has risen from 32 riyals per share at the time of the IPO to a high of 38.64 riyals per share last year. However, as of Thursday, the closing price of the company's shares had fallen to 29.95 rials per share.

Still, the company plans to pay a whopping $31 billion in dividends. The Saudi government owns 90 percent of Aramco, making it its largest shareholder, and relies heavily on the company's dividends.

The deal is expected to be one of the largest stock transactions in the region, the media said, citing sources familiar with the matter. Preparations are still under way and details are subject to change. Moreover, the government opted for a formal market transaction rather than a quick deal in a short period of time, and the banks managing the sale include Citibank, Goldman Sachs and HSBC. There was no immediate response from the Saudi government's communications office or Saudi Aramco.

The analysis pointed out that fast trading is mainly aimed at a small number of large investors, and while this method can raise money quickly, it may not get the highest price possible in the market trading. The Saudi government's choice of open market transactions can attract a wider range of investors and obtain a better share price, but also help maintain the stability of the company's share price. Editor/Xu Shengpeng