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Report: Aramco taps Goldman, JPMorgan, BofA for top IPO roles

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Report: Aramco taps Goldman, JPMorgan, BofA for top IPO roles

Saudi Arabian Oil Co. has reportedly tapped Goldman Sachs Group Inc., JPMorgan Chase & Co. and Bank of America Corp. for the top advisory positions on its long-awaited IPO, which would likely be the largest on record.

The state-run oil giant, known commonly as Saudi Aramco, told some banks of its decision Sept. 10, according to a report from Bloomberg citing people with knowledge of the matter. Both Goldman and JPMorgan, which were previously linked to the IPO, will likely act alongside a mix of other global coordinators on the deal, according to the report.

The decision marks a major win for the Wall Street institutions. The offering could result in $100 billion in net proceeds.

Aramco previously gave Bank of America the cold shoulder when it did not invite the bank to pitch for senior advisory roles in its stock market listing because it had not lent to the company in recent years, five sources told Reuters in 2018.

Banks around the world have been jockeying to lead the highly anticipated IPO for several years now. Those efforts recently heated up, though, as Saudi Aramco officials met with prospective bankers at the beginning of the month, according to Bloomberg. There were more than 20 advisory firms across the U.S., Europe and Asia invited to compete to lead the impending listing, the report said.

Saudi Aramco is said to be eyeing early 2020 for its IPO. CEO Amin Nasser reportedly said Sept. 10 that the company's shares will primarily be listed in Saudi Arabia, but added that it was still meeting with exchange officials from London, New York and Hong Kong.

However, sources had informed Reuters in August that Aramco's legal advisers have raised concerns on a New York listing as it could open the company to litigation risks. A source told the news service that Aramco will only consider listing its shares in the U.S. if it will be granted sovereign immunity.

Representatives from JPMorgan, Goldman Sachs and Bank of America declined to comment on the report. Representatives from Saudi Aramco did not immediately respond to requests for comment, according to the news outlet.