Riyadh – Mubasher: Saudi Arabian Oil Company, known for Saudi Aramco, has selected Lazard, the world's leading financial advisory and asset management firm, and Moelis & Co, the global independent investment bank to advise on the oil giant’s second attempt at the world’s largest initial public offering (IPO), Bloomberg reported.

Both Lazard and Moelis have started preparatory work on the offering.

They are expected to play a significant role in the listing, including in the selection of underwriters and listing venues as well as working to ensure Aramco can secure its valuation expectations.

“The oil producer was originally working with Evercore Inc. and Moelis, as well as HSBC Holdings Plc, JPMorgan Chase & Co. and Morgan Stanley. Lazard’s success working on the blockbuster Aramco bond sale this year put it in pole position to secure a role in the IPO,” Bloomberg said.

Earlier in July, Saudi Arabia’s energy minister Khalid Al Falih told Reuters that Saudi Aramco is ready to work on the postponed major offering, which may take place in 2020 or 2021.

“We have always been clear that the IPO will happen in the 2020-2021 timeframe. We have never stopped talking about the IPO,” Al Falih said.

Moreover, the state-run oil company started talks with investment banks to discuss potential roles in the mega share sale.

It is worth mentioning that Aramco’s IPO faces some concerns including Saudi Arabia’s ability to raise the company’s value to $2 trillion amid low oil price levels.

In August 2018, Saudi Arabia decided to halt the local and international IPOs of Aramco, the world’s most profitable company and largest oil producer.

Source: Mubasher

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