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Bloomberg
Advisers working on Saudi Aramco’s mammoth share sale may split a fee pool of as much as $450 million, according to people with knowledge of the matter, making it one of the biggest IPO pay outs globally.
The oil giant is set to pay between $350 million and $450 million to a group of more than 20 banks working on its initial public offering, reports said. The payment would represent a fee of about 1% on the $40 billion Aramco is seeking to raise.
JPMorgan Chase & Co. and Morgan Stanley are expected to be paid the most, the people said. The final amount paid to banks will depend on how much Aramco raises.
Investment bankers from around the world have been pitching for years to win a coveted role on Aramco’s IPO.
Many firms have been investing heavily into the kingdom on expectations of a fee bonanza as the country diversifies away from oil. Many have been left disappointed though as deals have been delayed or failed to materialize.
Even though Aramco’s would be one of the biggest fee pools for investment banks, it would still fall short of the $535 million Softbank Group Corp. paid when it raised $21 billion by selling shares in its Japanese telecommunications business last year.