LONDON/DUBAI - Boutique investment bank Evercore Partners has lost the chance to retain a prime position as an independent advisor for Saudi Aramco’s potential $100 billion share sale, as the oil giant revives its postponed listing, three sources said.
Evercore, founded and chaired by U.S. banker and former politician Roger Altman, had secured an equity advisory role with the oil giant in 2017 for what is expected to be the world’s largest ever initial public offering . Banks were dismissed, meaning that when the process re-starts they will have to make fresh pitches to the company, two other sources said.
HSBC, which was chosen as a global coordinator, could now end up with a more marginal role, two of the sources said.Although Saudi Aramco is known for having paid relatively low banking fees in the past, banks competed fiercely for an IPO mandate in late 2016 because it was viewed as a gateway to other deals expected to emerge from Saudi Arabia’s privatisation plan.