Six banks pitched for Aramco IPO

RIYADH — Saudi Aramco has received proposals from at least six banks for an advisory role on the firm›s planned initial public offering on the Saudi stock exchange, sources familiar with the process told Reuters on Tuesday. Saudi authorities are planning to list up to five percent of the world›s largest oil producer on both the Saudi stock exchange in Riyadh, the Tadawul, and one or more international markets in an IPO that could raise $100 billion. Riyadh-based HSBC Saudi Arabia, a joint venture between Saudi British Bank and HSBC, NCB Capital, Samba Capital, Saudi Fransi Capital, Riyad Capital and GIB Capital, the investment banking arm of Bahrain-based Gulf International Bank, submitted proposals to Aramco in early February, the sources said. Two of the sources said bank appointments were expected before the end of the month. The sources declined to be identified because details of the pitching process are confidential. Aramco did not immediately respond to a Reuters query for comment. HSBC declined to comment while the other financial companies did not immediately respond to email requests for comments. Meanwhile, hedge funds and other money managers have amassed a very large bullish position in crude oil futures and options without so far having much impact on oil prices. Hedge funds raised their combined net long position in the three main derivative contracts linked to Brent and WTI by another 51 million barrels in the week to Feb. 14. — Agencies Funds now hold a net long position equivalent to a record 903 million barrels of oil, according to an analysis of records published by regulators and exchanges. The combined net long position has a notional valuation of more than $49 billion, which is the highest since July 2014. Hedge funds hold more than 9.5 long positions for every 1 short position in Brent and WTI combined, the highest ratio since May 2014. Fund managers now have the most bullish view on oil since the first half of 2014, when Libya›s exports were nearly halted by civil war and Islamic State fighters were racing across northern Iraq. — Agencies