Saudi Aramco approaches sovereign funds to invest in its upcoming IPO: Report

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Saudi Aramco has approached Abu Dhabi Investment Authority (ADIA), Singapore’s GIC, and other sovereign wealth funds to invest in its upcoming listing on the local market as it seeks to achieve a $2 trillion valuation, Reuters reported, citing sources.

Banks appointed to handle Aramco’s initial public offering (IPO) have approached the sovereign wealth funds in recent months after initial conversations between Saudi Arabia and governments in the Gulf and Asia, the sources told Reuters.

Another meeting between Aramco’s management and a team from Abu Dhabi’s ADIA, the world’s third-biggest sovereign wealth fund, was set up for October, one of the sources said.

A second source confirmed the approach to ADIA, while two other sources said GIC had been approached.

Abu Dhabi’s state investor Mubadala Investment Co, which has $229 billion under management, has also been approached by Aramco’s advisers, two sources said.

One of the sources said the talks were still at an early stage and some of the funds had yet to study the proposals before deciding whether to invest.

Among Gulf investors, Bahrain’s sovereign wealth fund Mumtalakat was expected to consider investing in the IPO, another source said.

Saudi Arabia’s Crown Prince Mohammed bin Salman has valued the IPO at $2 trillion.

The listing is the centerpiece of the Kingdom’s Vision 2030 plan to reform the Saudi economy and diversify away from oil.

The talks show work on the IPO process is still moving forward despite uncertainty over the timeline following a September 14 attack on Aramco’s facilities.

Yasir al-Rumayyan, chairman of Aramco, has said that the IPO could be expected to happen anytime within the next 12 months.

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