Top Wall Street banks, including JP Morgan Chase (NYSE:JPM), Morgan Stanely (NYSE:MS), and Bank of America (NYSE:BAC), are vying an up to $20 billion share sale from energy behemoth, Saudi Aramco.
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According to Bloomberg, JP Morgan is pegged to be the main underwriter for the secondary share offering. Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), and HSBC Holdings (NYSE:HSBC) are already included in the lineup for the deal. While the timing of the share sale is yet to be chalked out, more banks could be added to work on the deal.
Reason for Aramco Share Sale
The funds raised from the deal, as per the report, could support Crown Prince Mohammed bin Salman’s vision of diversifying Saudi Arabia’s economy away from oil dependency.
Earlier this month, Aramco reported a nearly 25% drop in its overall profits. Still, the company doled out dividends worth $97.8 billion in 2023. Traders largely anticipate similar large-scale payouts from energy majors such as Shell (NYSE:SHEL), Chevron (NYSE:CVX), and ExxonMobil (NYSE:XOM) this year.
Is XOM Stock a Good Buy?
While share price gains in Exxon, Chevron, and Shell have been largely muted over the past year, the stocks continue to offer attractive dividend yields. Notably, Exxon offers a dividend yield of 3.4% alongside an attractive potential upside of around 15%.
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