Banks lining up for Aramco IPO
11 September, 2019
National oil giant Saudi Aramco has said that it is lining up banks for its long-awaited initial public offering as the sale is now imminent.
The company is expected to choose about four or five banks to lead the IPO marketing as joint global co-ordinators, while a larger number will work on the deal in more junior capacities.
Officials from bourses in London, New York and Hong Kong have been pitching to host the IPO’s foreign portion, while the main exchange to list shares will be in Saudi Arabia.
For Aramco, the domestic segment of the IPO could be key to the prospects for an international listing, with a high valuation at home potentially raising the bar for foreign investment. With persistently weak oil prices, that’s crucial to the success of Saudi Arabia’s plans to fund an ambitious economic agenda.