J.P. Morgan close to land lead advisor role for Saudi Aramco IPO
- 2 months ago
J.P. Morgan Chase is edging closer to land the role of lead advisor for the much-anticipated initial public offering of Saudi Aramco, the world’s most profitable corporation.
Until recently it was believed Morgan Stanley, was believed to be in the leading role, however, it took a hit due to the unsuccessful Uber IPO, according to sources.
Saudi officials, who are large owners of Uber through the country’s sovereign wealth fund, were displeased with Morgan Stanley after its bankers misjudged demand for the ride-sharing giant’s stock in May.
Shares of Uber fell by 18% in the first two days of trading and are still well below the IPO price of $45.
The move caps years of efforts by global investment banks to woo the Saudi kingdom for lucrative deals.
An IPO of state-owned Saudi Aramco, the world’s largest oil company and the Saudi government’s main source of revenue, has been the centerpiece of a plan by Crown Prince Mohammad bin Salman to diversify the country away from fossil fuels.
With the title of lead advisor comes bragging rights in the high-stakes world of investment banking and as lead advisor, J.P. Morgan bankers are privy to the most important discussions involving major decisions with the IPO, and will coordinate the other investment banks on the deal as they distribute shares to their respective institutional clients.
Source: Smart Trend Team