Saudi Aramco asks banks to submit proposals for its planned IPO


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Saudi Aramco asks banks to submit proposals for its planned IPO

After months of speculation, Saudi Aramco, the state-controlled petroleum and natural gas company based on Dhahran, Saudi Arabia, had finally asked major banks to formally submit their proposals for their roles in its slated IPO (Initial Public Offering), in effect what could be the biggest IPO global money markets had ever seen, two sources directly briefed over the subject-matter had unveiled on Monday, the 19th of April 2019 in terms of anonymity as the sources were not authorized to speak about the issue on public.

Aside from that, one of the two sources had added that the requests for proposals had been sent last week, while Saudi Aramco had declined to respond immediately while being asked about the subject-matter. In point of fact, the planned IPO of Saudi Aramco, which is expected to generate as little as $100 billion, would be the financial cornerstone for Saudi Arabia to propel towards such kind of economic transformation which would likely to attract foreign investments without any oil obsession, suggested analysts followed by the reveal of Aramco’s request for IPO proposal.

After an initial attempt to make the state-controlled energy company public failed last year, Saudi Arabia’s Crown Prince, Mohammed bin Salman had been quoted saying on last July that the largest company in the world in terms of profit and sixth-largest by asset, was expecting its IPO to take place between 2020 and early 2021.