- Saudi Arabia's stock exchange has granted approval to Merrill Lynch KSA to undertake market-making activities for the shares of oil giant Aramco, marking the first time an international bank has been authorized to do so in the kingdom. This approval, effective from March 19, was confirmed through an official statement. Market makers play a crucial role in enhancing liquidity for listed stocks.
- This decision aligns with Saudi Arabia's ongoing efforts to proceed with a secondary share offering for Aramco, the world's largest oil producer. JPMorgan Chase & Co. is poised to be one of the primary underwriters for the Aramco offering, with Bank of America Corp. and Morgan Stanley also vying for significant roles in the deal, as reported by Bloomberg News.
Why it matters
The anticipated offering has the potential to generate up to $20 billion, positioning it as one of the most substantial deals of its kind in recent years. Previously, local investment banks Riyad Capital and SNB Capital had received approvals from the Saudi regulator to engage in market-making activities for Aramco shares.
