Saudi Arabia’s potential initial public offering of its state oil company could be the largest ever, a juicy target for any ambitious Wall Street bank. In a country traditionally cold to outsiders, only a few have the experience to win it.
Bloomberg News reports that JPMorgan and HSBC are among international lenders in the best position to win a role if the kingdom goes ahead with an IPO of Saudi Arabian Oil Co., or Aramco, people familiar with the matter said. The two banks - whose presence in the kingdom goes back decades - helped arrange a $10bn loan for the company last year.
Deutsche Bank, which advised Aramco on its $3bn joint venture with Lanxess in September, may also be a favourite to be hired for a role, the people said, asking not to be identified as the information is private. Aramco will also likely appoint some of its key local lenders from the kingdom for the IPO, the people said. No mandates have been awarded yet and Aramco hasn’t sent out requests seeking advisory roles, they said.
Aramco said Friday it’s considering an IPO of part of the business or a sale of a stake in some of its subsidiaries.
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