• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 8 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 hours U.S. Presidential Elections Status - Electoral Votes
  • 18 hours Evergrande is going Belly Up.
  • 8 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 1 day Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 4 days Poland Expands LNG Powered Trucking and Fueling Stations
  • 4 days World’s Biggest Battery In California Overheats, Shuts Down
  • 3 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 12 hours Forecasts for Natural Gas
  • 3 days Ten Years of Plunging Solar Prices
  • 3 days Extraction of gasoline from crude oil.
Oil Rebounds On Tight Global Energy Supply

Oil Rebounds On Tight Global Energy Supply

Oil prices rose early on…

Shell Exits Permian In $9.5 Billion Deal

Shell Exits Permian In $9.5 Billion Deal

Anglo-Dutch oil supermajor Shell is…

Aramco Takes Big Step Toward IPO

Saudi Arabia’s state energy giant Aramco has been made a joint stock company in preparation for its initial public offering, planned to take place in the second half of this year. The company has a fully paid capital of US$16 billion (60 billion riyals) divided into 200 billion ordinary shares, and a board of eleven directors who will be in charge of the company’s listing.

The Saudi government will be responsible for proposing six of the eleven board members, and any shareholder with a stake of over 0.1 percent will be entitled to propose one candidate for member of the board.

Riyadh plans to list 5 percent of Aramco, hoping to pocket as much as US$100 billion, which would value the company at US$2 trillion. However, there have been doubts that the world’s largest oil company in terms of reserves is worth so much.

There have also been issues with the location of the listing. The short list includes the stock exchanges of London, Hong Kong, Tokyo, and the NYSE. However, the last one is unlikely to be picked because of litigation risks after Congress passed a post-9/11 law allowing U.S. citizens to sue Saudi citizens, and concerns over how the OPEC production cut deal could be construed as price fixing, which is illegal in the United States.

Related: Strong Draw In Crude Inventories Lifts Oil Prices

The LSE has been widely considered a favorite for the floating, with the British government and the Financial Services Authority—Britain’s financial markets watchdog—both working hard to win the hearts of the Saudis. However, these effort on the behalf of the FCA, backfired when it was revealed the regulatory authority was considering changing its listing rules especially for Aramco.

This raised vocal opposition from within the financial market circles, with insiders arguing that a change in the rules to accommodate Aramco’s listing would compromise the soundness of corporate governance practices the city is famed for.

This opposition led to a parliamentary probe into FCA’s intentions to allow companies majority-owned by a sovereign state to be eligible for a premium listing on the LSE. Earlier this week it emerged the FCA has decided to postpone its decision on the listing rule change. Meanwhile, Riyadh has repeatedly said that the IPO is on track and all listing venues are still being considered.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • Amvet on January 06 2018 said:
    Evaluating the stock will be difficult since oil reserves are unknown.

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