J.P. Morgan takes the lead as top adviser for Saudi Aramco IPO
Data: Investing.com; Chart: Axios Visuals
J.P. Morgan Chase is close to winning the lead advisory role for state-owned oil company Saudi Aramco's IPO, which is expected to be the largest ever at $25 billion. A final decision is expected next week, CNBC reports, citing inside sources.
What's happening: Saudi authorities reportedly plan to sell 5% of Aramco’s shares on the local Tadawul stock exchange and launch another, much larger, offering in a foreign market in the next 2 years.
Rumors have swirled about which location will get the much larger listing, with Tokyo most recently reported as the favored destination.
The exchange's CEO promised last year shares of Aramco listed on the Tadawul would be limited so as not to overwhelm the $500 billion bourse with Aramco's $2 trillion market value.
Of note: The Tadawul was recently incorporated into MSCI's emerging markets index, which has brought billions of dollars to the exchange so far this year.
From the start of 2019 through the end of July, foreign investors have accounted for 21% of total trading, reaching $56 billion, according to an August exchange filing.
The Saudi index had risen nearly 20% at its peak in May, Reuters reported.
However, the index has seen a steep slide since, due to geopolitical worries and the trade war, and is up 2.5% year-to-date.
