Championed by Saudi’s Mohammed bin Salman, the Deputy Crown Prince, the world’s biggest IPO is expected to be valued to at least $2 trillion.
Saudi Aramco has selected Morgan Stanley, JPMorgan Chase & Co and HSBC Holdings Plc as its lead underwriters for its upcoming initial public share offering (IPO), reported the WSJ citing sources familiar with the matter at hand.
This is slated to be the world’s biggest IPO and it could raise as much as $100 billion. The IPO itself is of strategic nature since the Saudi government intends to use it as a platform to diversify its oil-centric economy, as entailed in its ambitious Vision 2030 plan.
The country’s oil company, Saudi Arabian Oil Co, also referred to as Saudi Aramco, has received proposals from at least six banks for being advisors on its IPO, said several sources.
Saudi Aramco did not immediately respond to requests for comments. As for HSBC and JPMorgan, both declined to comment. Morgan Stanley also did not immediately respond to a request for comment.
The company has appointed White & Case, an international law firm with which it has a long established relationship to act as its adviser for the IPO, said sources.
The IPO is being championed by Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman, the country’s economic and energy Minister.
In 2016 he had stated he expects the IPO to garner a minimum of $2 trillion, if not higher.
Two options are currently being considered for Aramco when it goes public: it can either sell its shares to a global industrial conglomerate or it could do so to a specialized international oil company, revealed sources within the industry and banking community.
As for where it is going to be listed, Saudi Arabia favours the NYSE, but London and Toronto’s stock exchanges are also being considered, reported the Wall Street Journal.
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