Saudi Arabia in Talks with Wall Street Banks for Aramco Share Sale
In a significant move in the stock market, Saudi Arabia is reportedly in talks with central Wall Street banks for a significant share sale of Aramco.
Banks Enlisted for Participation
According to Bloomberg, Citigroup Inc., Goldman Sachs Group Inc., and HSBC Holdings Plc have already enlisted to participate in the offering. Boutique bank Moelis & Co. is serving as a financial advisor to aid in the selection of underwriters for the deal.
Primary Underwriter and Potential Proceeds
JPMorgan Chase & Co. is expected to be the primary underwriter for the offering. Bank of America Corp. and Morgan Stanley are also vying for prominent roles in the deal, which could potentially amass up to $20 billion in proceeds.
More Banks Expected to Join
Although the lineup of advisors may evolve, more banks are expected to join before the deal starts. Final decisions on the sale’s timing and the government’s share volume remain pending.
Marketing and Investor Orders
The offering is expected to be marketed and open for a few days, allowing investors to submit their orders, according to sources. This structure is similar to the one used by the Kingdom’s sovereign wealth fund for its $3.2 billion stake sale in Saudi Telecom Co. in 2022.
Supporting Economic Diversification
Proceeds from the impending listing could support initiatives by Crown Prince Mohammed bin Salman aimed at diversifying the economy beyond oil. Despite fluctuations in energy prices and reduced production, Aramco, boasting a market value of $2 trillion, raised its dividend payout to $31 billion this month.