Saudi Aramco to pay $450m on adviser fees for upcoming IPO
Saudi Aramco is set to pay up to $450m in fees to advisers working on its initial public offering, with Morgan Stanley and JP Morgan standing to benefit the most.
According to Bloomberg, which, citing sources familiar with the situation, the firm is paying between $350m to $450m in fees to IPO advisers from over 20 different banks. That payment would be around 1% of the $40bn the Middle Eastern oil-giant is looking to raise.
Goldman Sachs, HSBC, and Credit Suisse, as well as 15 book runners and three advisers, will also win from the listing. The final amount paid to banks will depend on how much Aramco raises.
Investment bankers from around the world have been pitching for years to win a coveted role on Aramco's IPO. Many firms have been investing heavily into the kingdom on expectations of a fee bonanza as the country diversifies away from oil.
However, after the attacks last month on two of Aramco's oil facilities, some speculated that the IPO could be delayed until the company comes back to full capacity. But Amin Nasser, the CEO said that oil production would be at full capacity by the end of November.
Aramco officials in the past have valued the oil-giant at $2trn in the past, and the $40bn figure would make it the largest IPO ever. Alibaba who current holds the record for the largest IPO ($25bn) paid roughly $300m in adviser fees.
A representative for Aramco declined to comment.
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