ARAMCO IPO - Which Bank is working on it? What are the headwinds?
Hi guys,
Just very curious if anyone knows who is working on the ARAMCO IPO? What are the deal details and structuring looking like at this time. It certainly appears to be a tricky tricky scenario, whereas the Saudis risk losing major market share in the meantime that they orchestrate the production cuts. It might just be enough time for the shale producers to come back in to the market with full force, leaving for lethargic revenues for the Saudi enterprise at least in the first 3-5 years. Given the capital intensive nature of the enterprise, how risky does it become to run such a big IPO in today's market? Add in to that, the market is at an all time high with several indices flashing red for some sort of major correction, if not a full blown recession. In fact, if there is a recession, it becomes even more tricky, given that the policy might change drastically and the fed may not want to continue digging deeper with the debt laden shovel and may eventually try to reverse policy to more historically normal interest rates. Just a few thoughts as I sip on my morning coffee. Would love to hear some ideas.
Moelis, JPM, and MS as of Feb 2017. HSBC and several Chinese banks were also under consideration.
Source: http://www.cnbc.com/2017/02/22/saudi-aramco-taps-jpmorgan-morgan-stanle…
Moelis is the sole advisor I believe https://www.ft.com/content/99353918-ed8c-11e6-930f-061b01e23655
Thanks guys. I am surprised that boutiques are now seemingly scooping up all the big deals. Time Warner first and now this. Why are boutiques preferred in such deals?
Evercore Said to Win Advisory Role on Record Aramco IPO (Originally Posted: 03/10/2017)
What a twist... Now EVC is also co-advising on Aramco
*Evercore Partners Inc., the U.S. bank founded by Roger Altman, won a role to advise on the planned initial public offering of Saudi Arabian Oil Co., according to people familiar with the matter, getting a coveted spot on what may be the largest-ever listing.
Evercore will work alongside rival Moelis & Co. as a financial adviser, the people said, asking not to be named as the details aren’t public yet. Aramco, as the state-owned oil giant is known, is also in the process of appointing investment banks to underwrite the IPO, they said.
Evercore’s Chief Executive Officer Ralph Schlosstein was personally involved in the discussions and will work on the deal, one of the people said. The firm and New York-based Moelis will help the oil giant pick underwriting banks, make decisions on potential listing venues and ensure the IPO goes smoothly. A role on the listing is a sought-after trophy for bankers, expected to generate millions of dollars in fees and commissions.
A spokesman for Evercore declined to comment. An Aramco representative said the company doesn’t comment on rumor or speculation.
Saudi Arabia’s Deputy Crown Prince Mohammed bin Salman has said the listing could value Aramco at more than $2 trillion, which may raise about $100 billion from the sale. Evercore is planning to open an office in Dubai as it seeks new business in the Middle East, people familiar with the matter said last month.
Evercore joins JPMorgan Chase & Co. and a boutique advisory firm run by former Citigroup Inc. banker Michael Klein, which were appointed last year, people familiar with the matter said in April.
Aramco is deliberating whether to list in cities including New York, London and Hong Kong to gain access to greater liquidity and a large pool of investors. Companies in the Middle East and Africa raised $2.3 billion through IPOs last year, compared with more than $20 billion in the U.S. and $7.7 billion in the U.K., according to data compiled by Bloomberg.*
Not surprising. if you look at the SNAP IPO, almost every single bank was on it lol. maybe excluding the ones that might have been conflicted.
The more impressive part of that article is Michael Klein's inclusion. He now has a staff, but the guy was at one point in the league tables as a one-man shop.
I'd give my left nut to see a pitch from Michael Klein
Imagine the analysts working on this deal... defining transaction will always shine on the CV
Looks like Deutsche is going to lead the IPO.
Where you get this info?
Business news, throughout the day.
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