Saudi firms looking at overseas listings
Several Saudi firms other than Aramco plan initial public offerings in overseas markets. Aramco’s listing is part of economic reforms pushed by Crown Prince Mohammed bin Salman.
ABU DHABI: JPMorgan is in early talks with Saudi Arabian companies about overseas listings, its investment bank chief said, raising the possibility that more firms could join oil giant Saudi Aramco in seeking an international flotation.
JPMorgan is among the banks advising Aramco on an inter- national public offering (IPO), sources have told Reuters.
Aramco’s listing is part of economic reforms being pushed by Crown Prince Mohammed bin Salman, who wants to make the Kingdom less reliant on oil. “If you want these companies to grow, they must have access to international capital markets,” Daniel Pinto, chief executive of JPMorgan’s investment bank, told Reuters about the possibility of other Saudi international listings.
“Local companies have expressed interest to us. They are at a preliminary stage,” he said in an interview in Abu Dhabi. This was the first time an influential banker has said Saudi firms other than Aramco could seek IPOs overseas.
The Saudi government plans to sell about 5 per cent of Aramco next year, a move that Saudi officials say could raise about $100 billion, making it the world’s larg- est IPO. Pinto declined to comment on the bank’s role in the Aramco deal or to name other firms considering international listings.
JPMorgan has deep ties with the government and firms Saudi Arabia, having worked in the Kingdom for more than 80 years. Pinto said the bank was also in talks with other Gulf companies to list their assets overseas.
He said listings in New York, London, Hong Kong or Singapore might help increase the liquidity of these companies and make them attractive for international investors, he said.
“When you have this type of momentum, people will see the benefit of having a stock that is very liquid. Other companies in the region will probably follow,” Pinto said.
Oman said earlier this year it planned to offer shares in some state-owned downstream energy companies to the public. Analysts and bankers have said Qatar and Kuwait may also consider plans to list energy assets.
JPMorgan was considering raising its headcount by 30 per cent in Saudi Arabia over the next two to three years from 70 now, as business opportunities expand, Pinto said.