I didn't see this on WSO so I figured we could start a discussion around it. Moelis & Co has apparently been chosen to be the adviser for Saudi Aramco in its IPO.
For those that are in Investment Banking or have knowledge of this I have some questions:
1.) What are the roles of JP Morgan and Michael Klein if Moelis is the exclusive adviser for this IPO? Are they simply the underwriters for this transaction?
2.) I understand investment banking is all about relationships but what do you think Moelis offered that other banks didn't in order to win this advisory role?
3.) Why would Saudi Aramco choose one adviser instead of a combination? Is it to keep workflow streamlined and avoid confusion?
Moelis will advise on who they should use as underwriters during the process. JPM will likely be underwriting a large portion of the offering
Moelis likely positioned themselves as being free of conflict of interest in terms of being able to advise on the sale as they don't use their own balance sheet (to my knowledge) so they can provide the best pure advice in terms of how to go about the transaction.
-In my opinion they probably won because in the arab world, certain aspects of finance are different such as the idea of interest being a taboo...so potentially Moelis, being free of that conflict of interest in terms of trying to get Aramco to offer (and then subsequently underwrite) a bigger stake was a very attractive selling point.
Your guess is as good as mine, they maybe just hit it off with Moelis.
Ken Moelis = Goat
Moelis' past experience with Dubai World (state owned), Drydocks (subsidiary of DW) and some UAE pe funds gives him a leg up regarding his understanding of the financial/political crossover in the region. He's kind of known for being able to handle eccentric or atypical personalities well and knows the region already
My bad, meant to SB you.
I gave him an SB and you a MS to even things out
AndyLouis , can we space out the MS/ SB icons a bit? Like maybe put them on different ends?
No, attention to detail matters in this business.
If you can't move your mouse/finger accurately enough, you don't deserve to be on this forum.