Summary
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 25 banks hired by Aramco as bookrunners for its domestic initial public offering have seen their projected payouts dwindle despite spending years working on the much-delayed marquee listing.
Aramco decided Sunday that it would offer only 1.5 percent of the company -- below the expected 2 percent.
If bankers had met certain milestones, including helping the company achieve a $2 trillion valuation and sell 2 percent of the company -- now impossible feats -- banks would have been entitled to be paid 50 basis points, the three sources said.
One of three sources said that Aramco Sunday gave banks a 76-hour deadline to confirm whether they would stay on the deal.
Some banks are still trying to secure investment from Western funds, a fourth source said, adding it was unlikely that Aramco would ditch any banks at this advanced stage unless they asked to drop out.
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