Production facility is seen at Saudi Aramco's Shaybah oilfield in the Empty Quarter, Saudi Arabia May 22, 2018. REUTERS/Ahmed Jadallah
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Banks including JPMorgan and Morgan Stanley worked for months to prepare what would have been the biggest ever stock market debut.The bankers were paid retainer fees but were expecting around $200 million would be shared among all the banks involved when the deal was done.Teams from JP Morgan and Morgan Stanley that worked on the IPO have been shifted to advise on Aramco's planned acquisition of up to $70 billion in petrochemicals firm Saudi Basic Industries (SABIC), three people familiar with the details of the transaction told Reuters.Spokespeople for JP Morgan, Morgan Stanley and HSBC declined to comment on their role in the Sabic deal. None of those banks have confirmed they were involved in the Aramco IPO. The banker did not give details of the other deals.Another person familiar with the Aramco deal said he had made more than 20 trips to Dhahran over 18 months but with little to show for it.Typical fees for banks doing IPOs in more developed markets are approximately 1 percent of the overall deal, while estimates from bankers and analysts for an Aramco IPO was 0.2 percent.
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