World’s biggest IPO is coming: Aramco splits advisory roles, denominates Brunswick

The markets are waiting for the biggest public offering in history to become truth.

“An IPO so big it will likely make any Silicon Valley unicorn look like a blip in the market.” (Forbes)

Aramco in Investors eyes

Investors will maybe have to wait another year or two, before Aramco goes public.

Some doubts on the high valuation of Saudi Aramco are certainly present. Because of high calculations. J.P. Morgan (Aramco’s loyal commercial banker) and Michael Klein (formerly of Citigroup) have been advising Aramco on the financial restructuring. Which is necessary for this process.

In the beginning, the IPO was expected to take place in early 2018. Later the expected date was pushed off to late 2018. Maybe even early 2019. This is likely due to Aramco’s desire to complete the financial restructuring process. In order to make the company more attractive to investors.

Consulting

Saudi’s crown jewel Saudi Aramco, has denominated advisory firm Brunswick to join FTI Consulting. All of that in order to run media and investor relations for what will be the world’s biggest initial public offering. (IPO)

This idea of selling parts of Saudi’s oil giant Aramco through IPO, came as a result of hopes it would raise company’s share sale. Also raising around 5% of the company’s value for about $100 billion. In 2018, ideas  are to list this 5% sale in several countries.

Brunswick

Brunswick was latterly denominated to run the external and media communications for the IPO. While U.S.-based FTI will focus on managing investor deals & relations.

Asked to give a comment on this subject, Brunswick spokeswoman refused to comment. Also FTI declined a request for comment. And finally Aramco refused giving any comments on this matter.

Possible stock exchanges for IPO

Mohammed bin Salman, Deputy Crown Prince, said Aramco is going to list its shares on the Kingdom’s stock exchange. As well as on one or more foreign stock exchanges, but did not reveal which one exactly.

Possible exchanges are London, New York and Hong Kong. Those may be the ones for the listing.

Aramco is asking governments of important countries, including China and large institutional investors convincing them to buy shares of the IPO. Although the full details of the listing, including Aramco’s size and value, are still unknown.

The $100 billion IPO price tag, is based on entire Aramco being valued at $2 trillion. Still, some analysts believe the ultimate valuation could be much lower. And that the real papers could show something which is well professionally hidden from the wide public eyes.

Noteworthy, Aramco is everyway one of the most profitable and largest operating giants in the world. Also it plays the biggest role in Saudi’s economy. The IPO should be very wisely done, because it will later have impact on company’s doing business.