Saudi Aramco close to hiring banks for key IPO roles: report

US-based JPMorgan and Morgan Stanley are both set to be appointed global coordinators and bookrunners for the initial public offering of state-owned Saudi Arabian Oil Co. (Saudi Aramco) next year, Financial Times reported, citing unnamed sources familiar with the matter.

HSBC is also expected to win an underwriting role for the Aramco listing, due to its longstanding Middle East presence and ability to attract Asian investors.

Aramco is expected to present a plan regarding its IPO, including key bank appointments, to King Salman for approval at the cabinet’s weekly meeting on Monday, during which the decision is expected to be taken.

Earlier this month, FT reported that New York-based boutique investment bank Moelis had won an equity advisory mandate for the Aramco IPO.

Saudi Arabia plans to sell a five percent stake in Aramco, the world’s largest oil company. The IPO is expected at around $100 billion, the world’s largest ever.

Saudi officials say the current valuation of Aramco is around $2 trillion.

The kingdom is mulling two options for the shape of the company ahead of the listing: either as a global industrial conglomerate or a specialized international oil and gas producer, Reuters reported Friday.

In light of the oil giant’s complicated assets, Saudi Arabia is also considering a "clean-up exercise" to make Aramco's structure neater, a banking source told the agency. Aramco’s non-oil businesses are likely to be moved to a separate entity before the floatation, it was reported.