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

Kneen Takes over as Tidewater CEO

Welcome to the App Store

VAALCO Spuds Etame Appraisal

Aasta Hansteen Output Can Exceed Max Capacity

ClampOn: Ultrasonic Intelligent Sensors

Jan De Nul Enters French Offshore Wind Market

SBM Inks Long-term FPSO Deal with Exxon

Supply-side Paradox in a Supermajor Exit

Remote Technologies Augment Capabilities

Exxon Discussing Norway Asses Sale with Var Energi

Current News

VAALCO Spuds Etame Appraisal

Woodside Backs Seismic Data Acquisition Company

ClampOn: Ultrasonic Intelligent Sensors

Remote Technologies Augment Capabilities

VOS Stone Supports SGRE at Hohe See

SeaTec Forays into Offshore Installation

SGRE Builds World's Largest Wind Turbine Blade

Ireland Calls for More Offshore Wind

Ukraine Strips US Firm of Black Sea Exploration Rights

Pharis Mulls Steam Flooding at Pilot Field

Subscribe for OE Digital E‑News

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