Saudi Aramco Asks Banks for IPO Roles

Saudi Aramco Asks Banks for IPO Roles

Saudi Aramco has recently asked major banks to submit proposals for potential roles in its planned initial public offering (IPO), Reuters reported.

The requests were reportedly sent to banks a few days day ago for what could be the world’s largest IPO, as Aramco planned to raise around $100 billion.

In June, Saudi Crown Prince Mohammed bin Salman reiterated commitment to the IPO, expecting it to take place between 2020 and early 2021. The formal IPO process is seen as a step following this affirmation.

The IPO was first announced in 2016 and has been delayed ever since. It may still face some obstacles such as the company’s valuation at a time of oil price fluctuations. The Saudi government previously put a $2 trillion valuation on the state company in early 2016 when the IPO was first proposed, however, bankers say the kingdom should trim its target to around $1.5 trillion.

JPMorgan, Morgan Stanley, and HSBC were previously picked for a role in IPO when it was first announced. Moelis & Co and Evercore were also hired by Aramco as independent advisers.

Saudi Aramco recently revealed that its first-ever earnings call has been scheduled for August.

The company announced in April that it has achieved a net income of around $111 billion during 2018, making it the world’s most profitable company.



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