Aramco IPO banks face pared payday of $90 million or less - sources - Reuters

Aramco IPO banks face pared payday of $90 million or less - sources - Reuters:

The army of banks working on Saudi Aramco’s listing will earn combined fees of $90 million or less, according to three sources involved in the process, after the oil giant scaled back a deal initially viewed as a golden opportunity for high finance.

The fee pool for the flotation of the world’s most profitable company contrasts with other blockbuster listings in recent years. China’s Alibaba (BABA.N), for example, paid out an estimated $300 million for its 2014 listing in New York.

The 25 banks hired by Aramco as bookrunners for its domestic initial public offering (IPO) have seen their projected payouts dwindle despite spending years working on the much-delayed marquee listing.

Saudi Arabia originally put the state company’s value at $2 trillion, but this was revised down to a maximum of $1.7 trillion. Aramco decided on Sunday that it would offer only 1.5% of the company - below the expected 2%.