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Report: Saudi Aramco chooses 9 i-banks to run IPO

State-run oil behemoth Saudi Arabian Oil Co. has picked nine banks to lead its much-anticipated IPO, set to be the largest in history, Reuters reported, citing two sources.

Saudi Aramco hired JPMorgan Chase & Co., Bank of America Merrill Lynch, Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley, HSBC Holdings PLC, Credit Suisse Group AG and Saudi Arabian banks National Commercial Bank and Samba Financial Group.

Bloomberg TV earlier reported that Bank of America and Credit Suisse were picked for the top roles.

The IPO of Saudi Aramco is a key pillar of Crown Prince Muhammad bin Salman's Vision 2030, which aims to diversify the kingdom's economy away from oil and to other sectors. Former Minister of Energy Khalid Al-Falih has said a public offering could open the company and Saudi Arabia to investments from the international community.

The investment banks who reportedly clinched top roles stand to earn substantial fees, with the IPO estimated to yield $100 billion in net proceeds. Bulge bracket investment banks have seen headwinds in their operations recently, with total revenues for the 12 largest i-banks in the six months to June-end dropping to the lowest point since 2006.

Where the stock will be listed is still up in the air, with different media reports stating that Saudi Aramco is talking with officials in New York, Tokyo, London and Hong Kong. Saudi Aramco is reportedly planning to list 1% of its shares on the Riyadh Stock Exchange and another 1% on the same bourse in 2020.

Other reports have said Saudi Aramco officials are hesitant to list in New York, as they fear a listing there could expose them to shareholder suits, or in Hong Kong, which is reeling from political unrest due to pro-democracy protests. London could also be out due to Brexit, according to the reports.