Aramco names IPO administrator

Saudi Aramco has assigned Motassim al-Maashouq to supervise its IPO, media reported on Monday.

The former vice-president of corporate planning will take on the title of vice-president of IPO development, and will lead the oil and gas giant’s preparations, according to Reuters.

The long-awaited listing may be the largest IPO to date, with the company valued at USD 2 trillion by the Saudi government. A total of 5% of the company is expected to be listed on the Saudi stock exchange, the Tadawul, in 2018 for an estimated worth around USD 100 billion.

Proceeds from the IPO are to be put towards strategic in-country investments, as the low oil price eats away at the nation’s coffers.

Also on Monday, HSBC’s chief executive after much speculation announced that the bank would be joining financial institutions JPMorgan Chase & Co. and Morgan Stanley as advisors on the deal.

In preparation for the IPO, sources indicated that Aramco was looking to raise USD 2 billion in sale of bonds, expected in the second quarter of 2017. To help in the sale of bonds, Aramco has chosen HSBC, Riyadh Capital, NCB Capital and Alinma Investment to act as advisors on the deal.

In August 2016, the Capital Market Authority introduced new rules that allow qualified foreign investors to participate in IPOs, allowing international players to participate in the Aramco offering.