Dubai: Saudi Arabian Oil Co is asking banks to pitch for roles as coordinators and bookrunners on its initial public offering, people familiar with the matter said, as the state-owned crude producer pushes ahead with plans for the world’s biggest share sale.
The company sent out the so-called request for proposals to banks over the past few days and aims to appoint a group of banks by early next year, said the people, asking not to be identified as the information is private. Saudi Aramco, as it’s known, hasn’t told banks where it plans to list the shares, the people said.
Saudi Arabia is seeking to sell as much as 5 per cent of Aramco as part of a plan by Crown Prince Mohammed bin Salman to set up the world’s biggest sovereign wealth fund and reduce the economy’s reliance on hydrocarbons. The sale could be the largest ever, based on the government’s $2 trillion (Dh7.34 trillion) valuation of the company.
Aramco is still waiting still waiting for a decision on how many shares will be offered to the public and where it will list outside of the kingdom, Chief Executive Officer Amin Nasser said last month.
A spokesman for Aramco declined to comment.
Aramco is already said to be working with advisers including former Citigroup Inc investment banker Michael Klein, JPMorgan Chase & Co, HSBC Holdings Plc, Morgan Stanley, Moelis & Co and Evercore Partners Inc on preparations for the listing.
