Saudi Arabian Oil Co. is asking banks to pitch for roles as coordinators and bookrunners on its initial public offering, people familiar with the matter said, as the state-owned crude producer pushes ahead with plans for the world’s biggest share sale.
The company sent out the request for proposals to banks over the past few days and aims to appoint a group of lenders by early next year, the people said, asking not to be identified as the information is private. Saudi Aramco, as it’s known, hasn’t told banks where it plans to list the shares, the people said.
Riyadh is seeking to sell as much as 5 percent of Aramco as part of a plan by Crown Prince Mohammad bin Salman to set up the world’s biggest sovereign wealth fund and reduce the economy’s reliance on hydrocarbons.
The sale could be the largest ever, based on the government’s $2 trillion valuation of the company. Aramco is still waiting for a decision on how many shares will be offered to the public and where it will list outside of the kingdom, Chief Executive Officer Amin Nasser said last month.
A spokesman for Aramco declined to comment.
Bloomberg
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