Aramco to establish new power company

Saudi Aramco is considering establishing, and then IPOing, a power company which will hold the power and steam generation assets which sit inside the fence of its vast industrial estate, Reuters has reported. A joint local bank/international bank mandate is currently being tendered for the role to advise on the proposal. Setting up Powerco is part of a plan to aggregate Aramco's activities and investments in cogeneration and then leverage these to become a national champion for Saudi Arabian power issues.