#Saudi Tadawul Group narrows banks for IPO process -sources | Reuters

Saudi Tadawul Group narrows banks for IPO process -sources | Reuters

Saudi Tadawul Group has short-listed three local and three foreign banks for potential advisory roles in the financial market company’s upcoming initial public offering (IPO), three sources said.

Citigroup, JPMorgan and Morgan Stanley were chosen, along with the securities unit of Saudi National Bank, Saudi Fransi Capital and HSBC Saudi Arabia, the sources said.

Tadawul, the kingdom’s bourse operator, is expected to chose one local bank and potentially one or two international banks for its listing, they said. A final round of pitching for roles is taking place this week, they added.

Tadawul did not immediately respond to a request for comment when contacted by Reuters on Wednesday. Citigroup, JPMorgan, Morgan Stanley and HSBC declined to comment. The units of Saudi National Bank and Saudi Fransi Capital were not immediately available for comment.

Tadawul said earlier this month it had received proposals from 10 local and international firms for the advisory roles.

Saudi Arabia’s stock exchange has converted itself into a holding company and will be renamed Saudi Tadawul Group ahead of the listing this year, Group Chief Executive Khalid al-Hussan said previously.

The group will have four subsidiaries - its bourse Saudi Exchange, securities clearing and depository businesses and technology services.