Khobar – Saudi Aramco is considering discounted shares for local investors, sources reported to Bloomberg. The oil company has discussed ways to structure the offering, allowing Saudi buyers to receive the stock at a lower price than international investors.
The company revealed that Aramco is studying listing its shares in the U.S., Britain, Asia and Saudi Arabia and is also planning to choose local banks that can provide consultancy regarding this issuance.
Two weeks ago, the company selected Moelis & Company as a consultant in the issuance.
Aramco has asked JPMorgan Chase and Morgan Stanley to assist with its upcoming mammoth IPO and could call on another bank with access to Chinese investors.
HSBC has emerged as the leading contender for a role among a list of five banks that could provide a pipeline to Chinese investors — an important part of the offering, the source said, adding that the other four are Chinese banks.
The final lineup for banks could still be adjusted, the source said, declining to be identified due to the sensitivity of the matter.
Officials in the kingdom expect the value of Aramco first issuance to reach USD1 trillion – Aramco issuance represents the cornerstone in Saudi Vision 2030 that aims at attracting foreign investment and diversifying economy beyond oil.
Aramco received offers from six banks to act as consultants in the IPO, reported Reuters. Among these banks: HSBC, Samba Capital and Saudi Fransi Capital.