Saudi Aramco set to pay up to $450 million in fees to IPO advisers

Investment bankers from around the world have been pitching for years to win a coveted role on Aramco’s IPO

Advisers working on Saudi Aramco’s mammoth share sale may split a fee pool of as much as $450 million, according to people with knowledge of the matter, making it one of the biggest IPO pay outs globally.

The oil giant is set to pay between $350 million and $450 million to a group of more than 20 banks working on its initial public offering, the people said, asking not to be identified because the information is private. The payment would represent a fee of about 1 per cent on the $40 billion Aramco is seeking to raise — relatively low compared to other markets. J PMorgan Chase & Co. and Morgan Stanley are expected to be paid the most, the people said. The final amount paid to banks will depend on how much Aramco raises, they said. A representative for Aramco declined to comment….

Falling Short

Even though Saudi Aramco’s would be one of the biggest fee pools for investment banks, it would still fall short of the $535 million Softbank Group Corp. paid when it raised $21 billion by selling shares in its Japanese telecommunications business last year.

Still, perhaps bankers shouldn’t complain too much. When Saudi Arabia’s National Commercial Bank raised $6 billion in its 2014 IPO, advisers including HSBC and Gulf International Bank were paid just 0.1 per cent of the offering value.,,,

From KPMG to Cathay, China warns global CEOs to fall in line on Hong Kong

Cathay, Hong Kong’s flagship airline, has become a symbol of what happens when a company is judged to have crossed China’s red lines

As anti-government protests in Hong Kong intensified this month, KPMG issued a directive to its employees in the city: Don’t speak on behalf of the company in public. It went on to say that the firm supports China’s policy for governing Hong Kong. PwC, another Big Four accounting giant, sent a similar message to staff telling them to avoid disclosing anything about the company on social media platforms, according to emails seen by Bloomberg.

This is the new reality for multinational businesses that have long grappled with a thorny question on China: What’s the price of access to Asia’s biggest economy? Beijing’s response to the hong kong protests, most notably its clampdown on Cathay Pacific Airways Ltd this month, has provided one answer: compliance with the Communist Party’s worldview, from senior management on down.

“The Chinese government doesn’t see business as being separate from the state and it has made it clear that if you want to do business in China, you’d better toe the line,” said Steve Vickers, chief executive officer of political and corporate risk consultancy Steve Vickers & Associates, and the former head of the Royal Hong Kong Police Criminal Intelligence Bureau….