Saudi Aramco Asks Banks to Pitch for IPO Roles

By Hadeel Al Sayegh and Saeed Azhar
Monday, August 19, 2019

Saudi Aramco has formally asked major banks to submit proposals for potential roles in its planned initial public offering, two sources with direct knowledge of the matter said.

Aramco's planned IPO, which could potentially raise $100 billion, is the centrepiece of Saudi Arabia's economic transformation drive to attract foreign investment and diversify away from oil.

Request for proposals were sent to banks few days day ago, they said.

Aramco declined to comment.

The formal IPO process begins after Saudi Arabia's Crown Prince Mohammed bin Salman had said in June the government remained fully committed to the IPO, expecting it to take place between 2020 and early 2021.

His comments triggered a series of approaches by international investment banks which wanted to be involved, Reuters had reported citing sources.

Work on the deal was halted in 2018 when Aramco began a process to acquire a 70% stake in petrochemicals maker Saudi Basic Industries Corp.

The IPO process could formalise roles for some of the banks that had been previously working on the transaction, one of the sources said.

Before the IPO process was halted, JPMorgan, Morgan Stanley and HSBC were picked to play a leading role in the world's biggest ever IPO when the plan was first announced in 2016.

Boutique investment banks Moelis & Co and Evercore were also hired by Aramco as independent advisers, sources had said at that time.


(Reporting by Hadeel Al Sayegh and Saeed Azhar, Editing by Jane Merriman)

Categories: Finance Industry News Middle East

Related Stories

Oil Hikes 7% after Trump Says US-Israel will Keep Striking Iran

ADES Expects Up to 44% Earnings Rise Despite Regional Tensions Impacting Rigs

Oil Falls on Middle East Ceasefire Hopes, Easing Supply Fears

Oil Executives Flag Long-Term Impact of Iran Conflict

Oil Rises as Iran Denies US Talks, Supply Risks Persist

China’s Sinopec Plans to Skip Iranian Oil, Tap Strategic State Reserves

IEA Weighs Further Oil Stock Releases as War on Iran Continues

US Oil Shield Starts Showing Cracks as Iran War Drives Prices Higher

Governments Move to Shield Economies as Oil Jumps 25%

Arabian Drilling Reactivates Fleet as GCC Offshore Contract Starts

Current News

Oil Hikes 7% after Trump Says US-Israel will Keep Striking Iran

Iran Assures Safe Hormuz Transit for Philippine Vessels

EnQuest Enters Malaysia with Cendramas Production Sharing Deal

Bahrain Push for Hormuz Shipping Resolution Hits Hurdles at UN

Energean Warns Prolonged Conflict May Delay $1B Gas Project

Iran War Reshapes Global LNG Trade

Drone Strike on Kuwaiti Oil Tanker off Dubai Signals Further Escalation in Gulf

INPEX Extends Pertamina LNG Pact, Signs Upstream MoU in Southeast Asia

Chiyoda, NYK, KNCC Target Global CCS Value Chain Development

PV Drilling Names New ‘Super Rig’ ahead of April Operations

Magazine

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com