• 4 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 7 minutes Middle East on brink: Oil tankers attacked off Oman
  • 11 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 14 minutes The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
  • 12 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 2 hours Coal Boom in Asia is Real and a Long Trend
  • 2 hours The Plastics Problem
  • 17 hours China's President Xi To Visit North Korea This Week
  • 7 hours Hydrogen FTW... Some Day
  • 9 hours GM Considering Electric Hummer
  • 21 hours OPEC, GEO-POLITICS & OIL SUPPLY & PRICES
  • 23 hours Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 6 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 19 hours Forbes: Giant Floating Solar Farms Could Extract CO2 From Seawater, Producing Methanol Fuel.
  • 13 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 23 hours Fareed Zakaria: Canary in the Coal Mine (U.S. Dollar Hegemony)
  • 21 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 17 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
OPEC Aims For $60-$70 Oil

OPEC Aims For $60-$70 Oil

Equatorial Guinea’s Oil Minister Obiang…

Have Canadian Oil Prices Hit The Sweet Spot?

Have Canadian Oil Prices Hit The Sweet Spot?

Canadian oil prices have recovered…

London Stock Exchange Boss Defends Push To Win Aramco IPO

LSE

Xavier Rolet, the chief executive of the London Stock Exchange (LSE) Group has defended the bourse’s campaign for winning the secondary listing of Saudi Aramco that has drawn a lot of criticism in recent months.

Rolet, who joined PM Theresa May on a trip to Riyadh several months ago to try and convince Aramco to pick London for its international listing, told Bloomberg that there is no rule that requires companies applying for a premium segment listing to float at least 25 percent of their shares.

“There is not a 25 percent governance rule. There’s a liquidity test. There have been companies that are extremely large that have been allowed to list with less than 25 percent. Let’s not confuse liquidity with governance,” he said.

Rolet referred to criticism from various organizations that lashed out at the Financial Conduct Authority after it proposed a change in the premium segment listing rules that would accommodate Aramco’s plan to list much less than the 25-percent minimum.

The proposed changes also involved a rule relaxation with regard to what sovereign shareholders could do with their shares in the company – they could buy assets from the company or sell its asset without needing to consult with the independent shareholders. In addition, the FCA proposed that sovereign shareholders be exempt from rules restricting their powers in appointing board directors without the approval of independent shareholders.

Related: The Next Big Digital Disruption In Energy

It seems that according to LSE’s chef, this does not constitute rule-bending. However, it’s safe to say that the proposed changes could very well reduce investor interest: it is unlikely that a lot of investors would be willing to have significantly reduced powers in favor of the sovereign shareholder, in this case Saudi Arabia. In other words, the changes that FCA proposed and the LSE clearly supports, might in fact betray their own purpose if they are ever approved.

The bourse chief’s defense follows an admission by the head of the FCA that the watchdog met with executives from Saudi Aramco several months prior to its proposal to change the listing rules for the London Stock Exchange to accommodate the oil giant.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News