China said to form consortium to invest in Aramco IPO

China is building a consortium that will include state-owned oil firms, banks, and the country’s sovereign wealth fund to act as a cornerstone investor in Saudi Aramco’s initial public offering (IPO) next year, Reuters reported, citing sources familiar with the matter.

China’s $800 billion sovereign wealth fund, the China Investment Corporation (CIC), along with oil giants Sinopec and PetroChina are among the entities involved in the consortium, the sources said.

Banks will also be included in the group, although the names of the lenders involved were not disclosed.

Last month, the agency reported that Industrial and Commercial Bank of China International Holdings and China International Capital Corporation (CICC) were among the Chinese banks seeking a role in the lucrative listing.

The final size of the consortium’s stake, and the entity that will lead the group, is yet to be decided, one of the sources said.

This decision will likely be made by China's cabinet in coming months, it was reported.

Saudi Aramco plans to float a 5 percent stake in the company in 2018, said to be valued at $100 billion, making it the world’s largest ever IPO.

The world’s top exporter reportedly plans to list on the Saudi Stock Exchange (Tadawul), in addition to one or two international exchanges.

Global bourses worldwide are vying for the listing, including New York, London, Hong Kong, Singapore, and Toronto.