Saudi Aramco Said To Pay Up To $450m To IPO Advisors
Sources say Saudi energy giant will pay between $350-450m to group of more than 20 banks advising on IPO

Advisors 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, the people said, asking not to be identified because the information is private.
The payment would represent a fee of about 1 percent on the $40 billion Aramco is seeking to raise - relatively low in comparison to other markets.
Saudi Aramco to announce IPO 'very soon', says chairman
Yasir al-Rumayyan tells forum that long-awaited IPO will take place 'sooner than you think'
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, they said. A representative for Aramco declined to comment.
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 materialise.
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.
Still, perhaps bankers shouldn’t complain too much. When Saudi Arabia’s National Commercial Bank raised $6 billion in its 2014 IPO, advisers including HSBC and Gulf International Bank were paid just 0.1 percent of the offering value.
Aramco’s board is planning to meet with its advisers on the IPO around October 17 to give final approval for the share sale, according to other people familiar with the matter. Aramco is speeding up preparations for the IPO with an aim of listing on the Saudi bourse as soon as November, Bloomberg News has reported.
The draw of working on what’s set to be the world’s biggest IPO -- even for relatively low compensation - has attracted some of the top Wall Street names. Aramco appointed nine global co-coordinators, including Goldman Sachs Group, HSBC Holdings and Credit Suisse Group. There are also 15 book runners and three financial advisers.
Alibaba Group Holding Ltd paid $300 million to banks when it raised $25 billion in the biggest IPO to date.
For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.UAEs Maseera Acquires Egyptian Fintech ADVA
The move marks a critical milestone in Maseera’s regional expansion strategy Read more
Oman Mandates IBAN For Domestic Transfers From July 2025
The move follows the Oman Central Bank's implementation of the IBAN system for international transfers from March 31, 2... Read more
Egypt And Jordan Thank The European Parliament For New Financial Aid
The European Union members recently approved loans worth $4.4 billion in three instalments to Egypt and $555 million to... Read more
Standard Chartereds SC Ventures To Replicate Asia, Africa SME Model In GCC
SC Ventures to bring its successful SME building strategy in India, South East Asia and Africa to GCC, and plans to rol... Read more
UAE Central Bank Revokes Licence Of Dynamics Insurance Brokers For Regulatory Breaches
Dynamics Insurance Brokers "failed to comply with the licensing terms and requirements issued by the Central Bank and w... Read more
Eid Al Fitr Holidays In The GCC; Dubais 100 Most Influential People; UAE Petrol Prices To Change; Royal Baby Announced – 10 Things You Missed This Week
Eid holidays, the Dubai 100, UAE petrol prices, Royal Baby named, Palm Jebel Ali investments and more top news stories ... Read more