Saudi Aramco names official to oversee IPO

khobar — State oil giant Saudi Aramco has appointed company veteran Motassim Al Maashouq to officially oversee preparations for its initial public offering (IPO), industry sources told Reuters.

Maashouq, who most recently worked as vice president of corporate planning and is viewed by industry insiders as well connected with the financial community, has taken up the position of vice president of IPO development, the sources said.

Saudi Aramco said it did not comment on rumour or speculation. The Saudi government plans to list up to five per cent of Aramco on the Saudi stock exchange in Riyadh, the Tadawul, and on one or more international markets. Analysts think this could raise $100 billion, based on Aramco being valued at $2 trillion.

HSBC wins mandate

Meanwhile HSBC Holdings Plc has been formally mandated as an adviser on the initial public offering of Saudi Arabia’s national oil giant Aramco, expected to be the world’s largest ever IPO, HSBC’s chief executive said on Monday.

Europe’s biggest bank joins peers including JP Morgan Chase & Co and Morgan Stanley on the deal, which is expected to raise some $100 billion and is the centrepiece of the Saudi government’s ambitious strategy to diversify away from oil.

HSBC’s chief executive Stuart Gulliver announced the bank’s appointment on the deal at a shareholders’ meeting in Hong Kong, confirming a Reuters report in February that the bank was close to being mandated on the hottest investment banking ticket in the world.