Saudi Aramco IPO mandates expected in coming days

The world's largest petrochemicals company has decided to proceed cautiously in its preparations for what may well be the largest initial public offering ever.

Saudi Arabian Oil Co. is studying hiring investment banks to help it with the float in different stages, with the potential for work to be retendered if the Kingdom is not satisfied with their work, four people with knowledge of the matter told Bloomberg.

As a first step, Saudi Aramco has contacted banks to act as financial adviser to it, reviewing possible venues for a future listing and helping it in other preparations ahead of its stockmarket debut.

Those banks which do well will be considered for other roles in later stages of the process, including underwriting the IPO.

If Saudi Aramco is not happy then the work may be retendered.

No final decisions have been taken yet on advisory roles but a mandate is expected to be issued in coming days.

Among the banks asked to pitch for an advisory role in the IPO are Goldman Sachs, HSBC, Credit Suisse, JP Morgan and Morgan Stanley and Citigroup.

Evercore Partners had already been taken on board in an advisory role, alongside rival Moelis, other sources told Bloomberg earlier in March.

Saudi Arabia planned to sell about 5% of the oil giant, which it believed could fetch a market value of $2.0trn.