• 2 days Shell Oil Trading Head Steps Down After 29 Years
  • 2 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 2 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 2 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 2 days Venezuela Officially In Default
  • 2 days Iran Prepares To Export LNG To Boost Trade Relations
  • 2 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 3 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 3 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 3 days Rosneft Announces Completion Of World’s Longest Well
  • 3 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 3 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 3 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 3 days Santos Admits It Rejected $7.2B Takeover Bid
  • 4 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 4 days Africa’s Richest Woman Fired From Sonangol
  • 4 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 4 days Russian Hackers Target British Energy Industry
  • 4 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 4 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 4 days Lower Oil Prices Benefit European Refiners
  • 4 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 5 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 5 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 5 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 5 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 5 days OPEC To Recruit New Members To Fight Market Imbalance
  • 5 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 6 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 6 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 6 days GE Considers Selling Baker Hughes Assets
  • 6 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 6 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 6 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 6 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 6 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 9 days The Oil Rig Drilling 10 Miles Under The Sea
  • 9 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 9 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 9 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
Did Venezuela Just Default?

Did Venezuela Just Default?

S&P Global Ratings declared Venezuela…

London’s Fund Managers Soften Opposition To Saudi Aramco IPO

LON

London’s top fund managers have thrown in the towel on their fight to stop Saudi Arabia’s state oil giant Aramco from listing shares on the London exchange, accepting that the “political will” to lure what is expected to be the biggest IPO in history is too strong to oppose, The Sunday Times reported.

Aramco, which Saudi officials claim is worth US$2 trillion, aims to list 5 percent of the company on one or more international stock markets next year.

In April, UK Prime Minister Theresa May traveled to Saudi Arabia together with London Stock Exchange boss Xavier Rolet to try to sell London as an Aramco listing venue to Saudi Oil Minister Khalid al-Falih, who is also chairman of the Saudi oil company.

Aramco wants to sell just 5 percent in IPO, but under the UK’s Financial Conduct Authority (FCA) rules, a company qualifies for a premium listing only if it has a minimum 25 percent free float, meaning Aramco’s 5% listing would fall significantly short of qualifying—that is, unless the listing rules were changed.

Earlier this month, asset manager Royal London warned against the London Stock Exchange changing initial public offering rules to better suit the tastes of Riyadh.

However, according to The Sunday Times, a subtle intervention by the FCA has softened investors’ opposition to a possible Aramco listing in London.

“London is not exactly in a position to turn business down at the moment,” one fund manager in the City told The Sunday Times.

Earlier this year, the FCA said in a discussion paper that it could create a “distinct international segment”, and “this may be attractive to companies where there is a founding family or government that wishes to retain control rights that are incompatible with a conventional premium listing.”

Related: The Biggest Obstacles For China’s $900 Billion Silk Road

The FCA will publish a follow-up paper in the coming days, in which it will discuss the proposals in detail, according to The Sunday Times.

Just last week, the architect of the Aramco listing and the Saudi official overseeing the IPO plans, Mohammed bin Salman, was promoted to crown prince in a Saudi royal succession reshuffle.

By Tsvetana Paraskova 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