• 4 minutes The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 1 hour GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days European Parliament Members, Cristian Terhes et al, push back against Totalitarian Digital ID and Carbon Tyranny in Europe.
  • 10 hours Once seen as fleeting, a new solar tech proves its lasting power
  • 5 days "How Long Will The Epic Rally In Energy Stocks Last?" by Tsvetana Paraskova at OILPRICE.COM
  • 3 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 days "...too many politicians believe things that aren’t true." says Robert Rapier
  • 7 days Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas

Breaking News:

Oil Should Stay In Triple Digits: Analyst

London’s Fund Managers Soften Opposition To Saudi Aramco IPO

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

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