Saudi Aramco said to seek IPO bookrunners, global coordinators

Saudi Arabian Oil Co. (Saudi Aramco), the world’s largest crude exporter, is seeking proposals from bankers before year-end to act as bookrunners and global coordinators for its initial public offering (IPO) next year, Reuters reported on Wednesday, citing unnamed sources.

The state-owned company is planning to float a 5 percent stake, expected to be valued at $100 billion in the offering. The IPO is in line with Saudi Arabia’s Vision 2030, which aims to diversify the Saudi economy away from oil.
 

The lenders currently working as advisers - JPMorgan, Morgan Stanley, and HSBC - are seen as front-runners for the global coordinator roles, with the potential addition of a few other banks, a third source said.

New York-based Moelis & Co and Evercore have already been appointed independent financial advisers.

Meanwhile, Goldman Sachs and Citi are among the many banks vying for a role, sources said.

Saudi officials have previously said that Aramco will be listed in Riyadh, as well as one or two other international exchanges.

Several global bourses are vying for the lucrative IPO, expected to be the world’s largest, including New York, London, Toronto, Hong Kong, and Singapore.