Saudi Aramco to choose boutique investment bank Moelis to advise on IPO
New York-based investment bank Moelis & Co has reportedly been chosen by Saudi Aramco to advise it on its massive initial public offering.
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The boutique bank had previously been shortlisted by the Saudi Arabian oil company to help in its selection of underwriting banks for its public share sale.
The company is hoping to sell less than 5% of its operations, which was expected to fetch around $100bn, easily making it the world's largest flotation.
Chinese e-commerce conglomerate Alibaba Group holds the position as the current largest IPO, after raising $25bn in 2014.
Several other deal-makers were reported to have been in the running to take on the job as a key advisor to Saudi Aramco, but the boutique investment bank appears to have won out.
The IPO is thought to be a significant step towards the restructure of the economy in the country, as part of its long term plan known as Saudi Vision 2030. It hopes to reduce its dependency in oil revenues during the next 13 years.
Oil prices have fallen from more than $110 per barrel in 2014 to below $30 in 2015, before its current level of around $55 per barrel.
The Organization of Petroleum Exporting Countries recently agreed to reduce oil production in an attempt to drive prices higher.
JPMorgan Chase has already been chosen as an advisor for the IPO, which will list the company initially in Riyadh, but also in London, New York and Hong Kong to gain more access to investors.