Saudi Aramco is reportedly considering an IPO for its trading unit as oil prices soar

• Saudi Arabia's oil producer Aramco is weighing an IPO of its trading unit, Bloomberg reported Tuesday.

• Aramco Trading could fetch a valuation of more than $30 billion, said the report citing unnamed sources.

• Saudi Aramco raised nearly $30 billion from its own IPO in 2019.

Saudi Aramco is weighing a potential initial public offering of its trading unit amid a surge in oil prices, Bloomberg reported on Tuesday, citing sources.

The state-run oil giant could sell a 30% stake in the unit, and Aramco Trading could fetch a valuation of more than $30 billion, sources told the news service.

The division was established in 2011 and trades crude and liquefied natural gas, among other products. Saudi Aramco itself raised $29.4 billion went it public in a high-profile listing of its shares in 2019.

For the trading arm's potential IPO, the company is working with top banks, including Goldman Sachs, JPMorgan Chase and Morgan Stanley, Bloomberg said.

Saudi Aramco is studying a potential listing as oil prices have soared. Prices for Brent crude, the international benchmark, and West Texas Intermediate crude, have each gained roughly 45% so far this year, leaping above $100 a barrel each after Russia launched its war against Ukraine in late February. Prices jumped on supply concerns as Russia is a major oil producer.

Stronger oil demand following the peak of the global COVID outbreak have also pushed prices higher. Such gains contributed to Saudi Aramco last week reporting its highest profit on record, with first-quarter net income up more than 80% from a year ago to $39.5 billion.

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