Aramco needs to list on major exchange to achieve cachet: Middle East expert
Saudi Aramco is poised to pay a combined $64 million to the banks that arranged the world’s largest initial public offering, a letdown for the Wall Street firms that spent years working on the deal, people with knowledge of the matter said.
The fee represents 0.25 per cent of the amount raised in the share sale. The state oil giant plans to pay the top local banks on the deal — known as joint global coordinators — 39 million riyals (US$10.4 million) apiece, according to the people. The top foreign banks on the deal will get 13 million riyals each, or the equivalent of US$3.5 million, the people said.
Local banks serving as bookrunners, a more junior role, will get about 5 million riyals each while foreign banks in that position will get about two million riyals apiece, the people said.
Aramco didn’t immediately respond to a request for comment.
--With assistance from Dinesh Nair.