Moelis & Co expected to apply for Saudi advisory license: sources

Moelis & Co is expected to apply for an advisory license from the Saudi Capital Market Authority (CMA) to enable it to secure more local equity capital markets and mergers and acquisitions work, Reuters reported Thursday, citing sources familiar with the matter.

Last year, the New York-based boutique investment bank Moelis has won an equity advisory mandate for Saudi Aramco’s upcoming initial public offering.

State-run Saudi Aramco's IPO has been delayed since then, as it is working on acquiring a potential strategic stake in Saudi Basic Industries Corporation (SABIC), from the Public Investment Fund (PIF).

Amid privatizations of state-owned assets and private firms’ financing activity, to help the Kingdom diversify its economy away from direct crude sales, Saudi Arabia is expected to witness a stream of other deals, Reuters added.

Moelis has expanded its presence to locations across North and South America, Europe, the Middle East, Asia and Australia. Its Middle East expansion accelerated since the opening of its Dubai office in 2010.

Foreign financial services firms are required to get licenses to practice certain activities within the Saudi capital markets, including the advisory roles on IPOs and merger and acquisition deals, the news agency highlighted.

In May, a senior executive at Citigroup pointed that the bank is considering applying for a full banking license, while Goldman Sachs plans to expand its services in the kingdom after being cleared to trade equities there.