Aramco mandates 15 banks to manage its IPO

Aramco mandates 15 banks to manage its IPO

Saudi Aramco has raised its IPO’s regulators to 15 banks, including Barclays, UBS, BNP Paribas, Société Générale, and Deutsche Bank AG, Gulf International bank, and Credit Agricole, informed sources said to Bloomberg.

Two sources familiar with the matter told Reuters that Aramco had assigned UBS and Deutsche Bank AG to manage the books of its IPO, indicating that the IPO moves are moving forward.

One of the sources said that Aramco had begun to brief the two banks on their role in bookkeeping.

Aramco has selected nine banks on the final list to play key roles as global focal points in recent weeks, Reuters reported.

Aramco’s list of banks has included JP Morgan, Goldman Sachs, Bank of America, Credit Suisse, City, Morgan Stanley, and HSBC,” Reuters also said.

Aramco’s locally mandated banks included Samba Financial Group and National Commercial Bank.

The Largest-Ever IPO

Aramco is preparing to sell a 5% stake by 2020-2021, in an IPO that may be the largest of its kind in the world. The company is expected to appoint its advisers in the offering in the coming days.

The introduction of Aramco is one of the main pillars of Saudi Arabia’s efforts towards economic transformation, aimed at attracting foreign investment and diversifying the economy away from its dependence on oil.

Saudi Aramco Chairman, Yasser Al-Rumayyan said at a press conference in Jeddah on Tuesday that the attacks on Aramco’s oil facilities in Abqaiq and Khurais “will not delay the launch of Aramco and will not delay its preparations”.

Al-Rumayyan said that the claimed IPO of the national oil giant will be ready in the next 12 months and that Saudi Arabia is committed to listing, adding that “the IPO depends only on market conditions”.

Aramco’s IPO Moves Forward

Saudi Arabia’s Energy Minister, Prince Abdul-Aziz bin Salman began the news conference heralding the return of “Saudi oil supplies to their levels before the attack on Aramco facilities”.

He added that Saudi Aramco is ready to the IPO regardless of the effects of blatant aggression, adding that “the effects of this aggression extend to global energy markets, and deepen the pessimistic view of the prospects for the growth of the global economy”.

Prince Abdul-Aziz bin Salman said that “Saudi oil exports, and income from these exports for the current month will not be affected by the attacks”.

He stressed that Saudi Aramco “will meet its full obligations with its customers in the world, during this month through stocks, and through the adjustment of some types of mix, with the Kingdom’s capacity to produce 11 million bpd by the end of September, and to 12 million bpd by the end of next November”.

Aramco is Stronger

Saudi Aramco’s CEO, Amin Al-Nasser said in a letter to Saudi Aramco’s 70,000 employees that after the attacks on its oil facilities in Abqaiq and Khurais on September 14, Aramco is stronger than ever, confirming that those attacks aimed at hitting the world economy and destabilizing the Saudi oil industry by destroying Saudi Aramco’s structure yet it had a positive effect they have not counted.