• 3 minutes Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 6 minutes Forecasts for Natural Gas
  • 14 minutes NordStream2
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 hours Communist China Declared War on the US Long Ago Part 1 of the 2-part series: The CCP's War on America
  • 2 hours China's aggression is changing the nature of sovereignty.
  • 10 hours Delta variant in European Union
  • 3 days Ukrainian Maidan after 8 years
  • 16 hours President Biden’s Nuclear Option Against OPEC+ - Waste of Time
  • 4 days OPEC+ Expects Large Oil Glut In Early 2022
  • 4 days Microbes can provide sustainable hydrocarbons for the petrochemical industry
  • 2 days Сryptocurrency predictions
  • 4 days CO2 Electrolysis to CO (Carbon Monoxide) and then to Graphite
  • 4 days Hunter Biden Helped China Gain Control of Cobalt Mines in Africa
Florida Startup Offers Solution To Decades-Old Pipeline Puzzle

Florida Startup Offers Solution To Decades-Old Pipeline Puzzle

Florida-based company Trans Caspian Resources…

California Is Addicted To Oil From The Amazon

California Is Addicted To Oil From The Amazon

California is regarded as America’s…

Warnings Mount Against Rule-Bending For Aramco IPO In London

Royal London, an asset manager, has warned against the London Stock Exchange changing initial public offering rules to better suit the tastes of Riyadh, which is preparing to take Aramco, the world’s biggest oil company by production, public.

The fund’s corporate governance manager, Ashley Hamilton Claxton, said in a statement that “Any attempt to bend the listing rules in order to facilitate the IPO of Saudi Aramco is highly inappropriate and flagrantly ignores the principles which the UK’s listing rules were designed to defend. While the listing would be a prize asset on the exchange due to the sheer size of the firm, the attempt to list just 5 per cent of the total share capital flies in the face of what is acceptable.”

The latter part of the statement refers to the requirement of floating at least 25 percent in a premium listing and comes in response to news that the LSE and the Financial Conduct Authority are at the moment working on changing the rules—a change which would accommodate the Aramco listing as premium rather than secondary.

The London Royal statement also follows on the heels of a similar warning from Financial Times associate editor John Gapper, who wrote yesterday that “The point of listings rules is to attract as many companies as possible while ensuring they are trustworthy. There is a tension between the two — laxer rules can lure more issuers in a race to the bottom — but in the end, as the Financial Conduct Authority noted recently, “high corporate standards [lead] to high levels of investor confidence and, in turn, a vibrant market.”

Related: Saudi America – How New Tech Is Creating Another Oil Boom

Aramco would certainly be a tasty morsel for any stock exchange, but the short list to date seems to have narrowed down to NYSE and LSE. It may well be that the London exchange comes out a winner.

Earlier this month, a legal adviser to Riyadh said, as quoted by the FT, that listing Aramco in New York will come with a risk of litigation, after the passing of the Justice Against Sponsors of Terrorism Act, which allowed families of the victims of the 9/11 terrorist attack to sue Saudi Arabia. In fact, in March this year, the families of 850 of the victims did start a class action suit against the Kingdom.

Royal London’s Claxton said the fund manager will “lobby strongly” against any kind of special treatment for the Saudi company.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News