Saudi Aramco has selected Samba Capital as one of two banks to work as an advisor on its planned initial public offering (IPO) in Riyadh, Reuters reported, citing unnamed banking sources familiar with the matter.
At least six banks have competed for a role on Aramco’s listing on the Saudi Stock exchange (Tadawul), sources said.
Saudi Arabia plans to sell up to five percent of Aramco’s shares at an expected value of $100 billion.
The state-owned oil giant has reportedly asked JPMorgan and Morgan Stanley to work on the IPO, along with Michael Klein bank and boutique investment bank Moelis & Co.
Local advisors are likely to earn less fees compared to global firms, but the fees should still be attractive, as the deal is expected to be the largest local listing in the kingdom’s history.
"The government will negotiate aggressively on the fees and their size will depend on how much of Aramco the government decides to list," said a banker familiar with the matter, according to Reuters.
Local advisors will work with the Capital Market Authority’s (CMA) regulators to prepare for Aramco’s local listing.
Samba Capital, the investment arm of Saudi Arabia's third-largest bank by assets, is one of the more active local investment banks.
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}