DUBAI (Reuters) - Saudi Aramco has hired nine banks as joint global coordinators to lead its planned initial public offering (IPO), slated to be the world’s largest, two sources familiar with the matter told Reuters on Wednesday.
The mandates have been heavily sought by the world’s biggest investment banks for a transaction which, according to Saudi Crown Prince Mohammed bin Salman’s initial plans, could generate around $100 billion for Saudi Arabia’s state coffers.
The kingdom plans to list 1% of the state oil giant - the world’s largest oil company - on the Riyadh stock exchange before the end of this year and another 1% in 2020, sources told Reuters this week, as initial steps ahead of a public sale of around 5% of Aramco.
Aramco has selected JPMorgan (JPM.N), Morgan Stanley (MS.N) and Saudi Arabia’s National Commercial Bank (1180.SE), which were previously working on the share sale before it was paused last year, the sources said, declining to be identified due to commercial sensitivities.
It has also chosen Bank of America Merrill Lynch (BAC.N), Goldman Sachs (GS.N), Credit Suisse (CSGN.S), Citi (C.N), HSBC (HSBA.L) and Saudi Arabia’s Samba (1090.SE), they added.
JPMorgan, Bank of America, Credit Suisse and HSBC declined to comment. Aramco and the remaining banks did not immediately respond to a request for comment.
The IPO plan has rapidly gained momentum in recent days with the appointment of the head of the kingdom’s PIF sovereign wealth fund, Yasser al-Rumayyan, as Aramco’s new chairman.
Rumayyan, a close ally of Prince Mohammed, took over from former energy minister Khalid al-Falih in a move to separate Aramco from the ministry, a step Saudi officials have
