Deals
Saudi Aramco Set to Pay Banks Only $64 Million for Record IPO
- Top foreign banks on share sale to make only $3.5 million each
- Saudi oil giant paying base fee equal to 0.25% of deal size
Photographer: Simon Dawson/Bloomberg
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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 pitched aggressively for a spot on the deal, people with knowledge of the matter said.
The Gulf oil giant plans to pay the top local banks on the deal -- known as joint global coordinators -- 39 million riyals ($10.4 million) apiece, according to the people. The top foreign banks on the deal are set to each get 13 million riyals, or the equivalent of $3.5 million, the people said, asking not to be identified because the information is private.