Saudi Arabia said to be planning NEOM IPO as soon as 2024
Saudi Arabia is working with New York investment bank Lazard as it considers how to pay for $500bn megaproject NEOM.
Lazard is helping the kingdom evaluate financing options, including debt sales and a potential initial public offering on the Saudi stock exchange, according to the people.
Deliberations are in the early stages and no firm decisions about the size or structure of any financing have been taken, the people said, asking not to be identified discussing confidential information.
NEOM IPO considered
A spokesperson for Lazard declined to comment, while a representative for Neom didn’t respond to request for comment.
The advisory mandate puts Lazard in a prime position to land future work related to Neom, which is considered by many to be one of the most complex construction undertakings in the world.
Announced in 2017, the urban megaproject envisions a high-tech metropolis in a desert expanse the size of Belgium that will include everything from ski resorts to canals filled with swimmable water — creating a novel aquatic commuting option.
The first phase of Neom, which runs until 2030, will cost SR1.2tn ($319 billion), with about half of that figure covered by Saudi Arabia’s Public Investment Fund, Prince Mohammed said in July.
The kingdom has set aside SR300bn riyals for an investment fund on the project and plans an IPO for NEOM as soon as 2024.
Lazard has picked up some of the most high-profile investment banking mandates to come out of Saudi Arabia in recent years, including a role as financial adviser on the $30bn IPO of oil giant Aramco.
It is currently working on the potential listing of Aramco’s trading arm, one of the most anticipated share sales this year, the people said.
Lazard is one of a number of advisory specialists building its on-the-ground presence in Saudi Arabia in anticipation of more lucrative work.
In September, it appointed Riyadh-based Sarah Al-Suhaimi as chair of its financial advisory business in the Middle East and North Africa.
This followed the hiring of Saudi national Wassim Al Khatib, a former Citigroup Inc. banker who played a key role on Aramco’s IPO.