(Yicai Global) April 11 -- The Arabian American Oil Company, Saudi Aramco, board meeting will be held in China in May, which will be the first time in seven years, say foreign media reports. Saudi Aramco hopes to attract Chinese and Asian investors to participate in its stock issuance.
The company's board of directors will hold a meeting in Shanghai on May 10 to discuss business plans, investments and the preparations to sell up to 5% of its stake in 2018, Reuters reported today, citing unidentified sources.
The board meeting of the company is held twice a year, and often overseas, but it was only once held in China in 2010. Saudi Aramco has hired an international investment bank with Chinese investor channels as its initial public offering (IPO) adviser.
The two sides discussed the issue of Saudi Aramco's IPO and the possible role of Chinese investors when Saudi King Salman visited Beijing last month, the sources said.
It was reported that the consultation is still in the initial stage and any of China's investment in Saudi Aramco may require the coordination of Chinese government. Insiders familiar with the matter said ICBC International Holdings, a unit of Industrial and Commercial Bank of China, as well as China International Capital Corporation (CICC) and many other banks, are interested in participating in Saudi Aramco's IPO.
China's participation in Saudi Aramco's IPO could make it easier for Saudi Arabia to invite more Chinese investments in other areas, the sources commented.