Saudi Aramco has asked JPMorgan Chase & Co. and Morgan Stanley to assist with its upcoming initial public offering and could call on another bank, HSBC, with access to Chinese investors, according to separate reports in Reuters and the Wall Street Journal, which cited unnamed sources.
The major U.S. banks join Moelis & Co., a boutique firm, to participate in the listing, which is expected to be the world’s biggest IPO worth some $100 billion.
Bloomberg reports that Aramco has “discussed ways to structure the offering in different tiers, allowing Saudi buyers to receive the stock at a lower price than international investors,” citing unnamed sources. Typically, shares in companies owned by the Saudi government have traditionally been offered to locals at a nominal value of about 10 riyals ($2.67) each — usually far below their actual worth, according to Bloomberg.
The IPO is the centerpiece of the Saudi government’s ambitious Vision 2030 plan.