Bloomberg/Peter Foley

Business

Goldman, JPMorgan among banks in top Saudi Aramco IPO roles

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The oil producer was originally working with Evercore Inc. and Moelis & Co. as well as HSBC Holdings, JPMorgan and Morgan Stanley during its first IPO attempt in 2018.

Wednesday 11, September 2019

Saudi Aramco has picked banks including Goldman Sachs Group and JPMorgan Chase & Co. for top roles on its planned initial public offering (IPO) following intense lobbying by some of the world’s top dealmakers, reported Bloomberg.

Bankers spent the beginning of the month making pitches in Saudi Aramco’s headquarters in Dhahran, with some additional presentations in Dubai and London. The company invited more than 20 advisory firms from the US, Europe and Asia to compete, including some of the world’s biggest underwriters as well as a number of smaller banks.

The oil producer was originally working with Evercore Inc. and Moelis & Co. as well as HSBC Holdings, JPMorgan and Morgan Stanley during its first attempt at a listing.

Saudi Aramco is considering selling shares on the Tadawul as soon as late 2019 or early 2020 with an international listing later. While Aramco has yet to decide on the overseas venue, top officials from the exchanges in London, New York and Hong Kong have been actively pitching the oil giant.

The company recently said that it continues to engage with its owner on ‘IPO readiness activities’ and is ready for a share sale that will take place at a time of the shareholder’s choosing.”

The on-again-off-again plans for a listing had been put on hold as the firm focused on a $69 billion deal for a majority stake in petrochemical maker SABIC. When the preparations were revived this year, many of the banks that won roles initially had to start over, leading some to wonder whether it was worth the effort.

The IPO project was first announced in 2016 as the cornerstone of the Kingdom’s Vision 2030 plan to modernise its economy, with a target of listing in the second half of 2018.

TAGS : Goldman Sachs Group, Saudi Aramco, JPMorgan Chase & Co., IPO, Dhahran, Vision 2030, SABIC, Evercore Inc., Moelis & Co., HSBC Holdings

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