Saudi Aramco asks banks to submit proposals for IPO roles
The initial public offering has been delayed multiple times, but appears to be back on track
Saudi Aramco has asked banks to submit their pitches for roles in its initial public offering, Reuters reported, citing two anonymous sources. Proposal requests were reportedly sent a "few days ago."
The IPO was meant to free up $100bn for Crown Prince Mohammed bin Salman's diversification efforts in the kingdom, but was put on hold as Saudi Aramco sought to purchase a 70% stake in Saudi chemicals giant SABIC. Skeptics also called into question Prince Mohammed's valuation of the company at $2trn.
Officials have repeatedly assured that the IPO was on track for 2020-21, but this is the first actual move towards a public listing.
Reuters reported that JPMorgan, Morgan Stanley and HSBC were initially chosen to lead the IPO when it was announced in 2016, with Moelis & Co. and Evercore slated to act as independent advisers. It is unclear where they will stand in the new arrangement.