(Yicai Global) April 20 – China is in the middle of "creating a consortium, consisting of state-owned oil groups, banks and its sovereign wealth fund, to act as a cornerstone investor in the initial public offering of Saudi Aramco," and the value of the share issue is expected to be as high as USD100 billion, Reuters reported, citing informed sources.
Saudi Aramco, officially known as Saudi Arabian Oil Company, plans to go public next year, and the IPO is expected to be the largest in the world to date, attracting many major exchanges including Hong Kong Exchanges and Clearing Ltd. and New York Stock Exchange. The planned Chinese investment makes it more likely that the world's biggest oil exporter would seek a listing in Asia, the sources told Reuters.
Saudi Aramco's board plans to meet in Shanghai next month to attract Chinese investors for the share offering, Reuters reported earlier this month. Chinese companies are interested in investing in the Aramco IPO as China, the world's second biggest oil consumer, seeks to secure crude supplies, Reuters quotes Saudi officials as saying. On March 16, China and Saudi Arabia signed a memorandum of understanding on deals worth USD65 billion and declarations of intent.
China Investment Corporation (CIC), China's oil giants Sinopec and PetroChina, as well as a number of state-owned banks, are among the institutions that are expected to take part in the Chinese consortium which is expected to bid for Aramco shares, the same sources claimed, according to Reuters.