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Exclusive: Bankers invited to Saudi Arabia to pitch for Aramco listing roles

Reuters  |  LONDON/DUBAI 

By Afanasieva, Tom and Denina

LONDON/(Reuters) - has invited banks pitching for roles in its listing, including and Goldman Sachs, for meetings in the kingdom in the coming weeks to make their case, according to three sources familiar with the matter.

The meetings are an indication that preparations for a 2018 initial public offering, which could be the biggest in history, are progressing despite market speculation it could be delayed or even shelved.

Executives from Citi, Goldman and Deutsche Bank, which are all bidding to be global coordinators for the share sale, are among the teams invited to present their pitches in person, said the three sources, including two bankers who expect to attend the meetings.

The talks will be held at the end of January or beginning of February in the Eastern Province city of Dhahran, where the company is headquartered, they added.

Two of the sources said the talks would involve members of the banks' equity capital markets teams, executives who would be directly involved in an IPO, rather than top management.

Aramco, Deutsche Bank, and all declined to comment.

The listing of the national champion is a central part of Crown Mohammed bin Salman's reform drive aimed at restructuring the kingdom's economy and reducing its dependence on revenue.

The government, which aims to float up to 5 percent of the company this year, says is worth $2 trillion - but several industry experts have questioned whether a valuation that high is realistic.

had asked the banks to present written pitches last month, according to the sources. The giant told bankers not to come up with a valuation, saying it had not provided enough financial information to do so, two of the sources said.

Preparations for the might be gathering speed just as the price of has approached $70 per barrel, the highest since mid-2015, giving a better chance to achieve its desired valuation and become the world's most expensive company.


The listing is a mammoth undertaking, and any banks chosen to be global coordinators will join JPMorgan, and HSBC, who were appointed last year.

With so many banks expected to share the fee pool, the advisory are not viewed in the industry as particularly lucrative. But bankers see such roles as a gateway to a host of other deals they expect to flow from the kingdom's plan to revamp its economy.

In another sign that plans for the are moving ahead, Arabia has changed the status of to a joint-stock company as of Jan. 1, according to a cabinet decree published in the kingdom's official bulletin last week. The change of status is a requirement for companies before they can list, a senior source told

However the final decision about if and when the listing takes place rests with Crown Mohammed bin Salman, according to several sources.

The led an anti-corruption purge which saw several royals, ministers and detained late last year. It was the latest in a series of steps he had taken to assert influence internationally and amass more power for himself at home.

As well as the economic reforms, the daunting list of challenges undertaken by the 32-year-old since his father, Salman, ascended the throne in 2015 include going to war in and cranking up Riyadh's confrontation with arch-foe

(Additional reporting by Dmitry Zhdannikov; Editing by Pravin Char)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, January 08 2018. 19:57 IST