Wall Street banks will reportedly miss out on a massive payday after Saudi Aramco decides to keep its record-shattering IPO local

Wall Street banks will reportedly miss out on a massive payday after Saudi Aramco decides to keep its record-shattering IPO local

Investment banks that worked on Saudi Aramco's record initial public offering could miss out on a huge payday now that the IPO is being kept local, Bloomberg reported.

While advisers and arrangers will be compensated for costs, it may not be enough to make a significant profit, according to the report.

It's now likely that Saudi banks will reap most of the fees from the $25 billion Aramco is looking to raise, as most investors will come from inside the kingdom.

Read more on Business Insider.

Investment banks that worked on Saudi Aramco's record-breaking initial public offering could miss out on a massive payday now that the IPO is being kept closer to home, Bloomberg's Matthew Martin, Javier Blas, and Dinesh Nair reported Tuesday.

That's because banks like Goldman Sachs and Morgan Stanley will reap less in fees now that Saudi Aramco will keep the IPO within Saudi Arabia, according to Bloomberg. In addition, while advisers and arrangers will be compensated for costs, it may not be enough to make a significant profit, the report stated, citing people familiar with the deal.

It was expected that more than two dozen advisers “” including banks, lawyers, marketing and advertising agencies “” would be paid between $350 million