• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 12 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 4 hours Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 4 hours Theresa May to Step Down
  • 5 hours Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 15 hours Total nonsense in climate debate
  • 16 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 15 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 18 hours Will Canada drop Liberals, vote in Conservatives?
  • 19 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 19 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 15 hours Apple Boycott in China
  • 11 hours Australian Voters Reject 'Climate Change' Politicians
  • 2 hours Why is Strait of Hormuz the World's Most Important Oil Artery
The Single Most Bullish Indicator For Oil

The Single Most Bullish Indicator For Oil

Crude futures saw some headwinds…

The Fear Factor Is Back For Oil

The Fear Factor Is Back For Oil

While fundamentals suggest lower oil…

Saudi Crown Prince Favors New York Over London For Aramco IPO

NYSE

Even though Saudi Arabia’s advisors are favoring London over New York for the foreign venue to list Aramco shares, Saudi Crown Prince Mohammad bin Salman and the Saudi government are more inclined to favor New York for the world’s largest IPO next year, Reuters reported on Friday, citing sources familiar with the plans.

Crown Prince Mohammad bin Salman—who is overseeing Aramco’s listing plans—may pick New York over London due to “political consideration”, in view of the long-standing Saudi-U.S. relationship, according to Reuters’ sources, who noted, however, that the final choice would also take into account financial factors.

“That is broadly correct,” a senior industry source told Reuters, referring to the NYSE option for Aramco’s listing.

Responding to Reuters, Aramco said that “All options continue to be held under consideration. There is no timetable requirement for an immediate definitive decision.”

A possible listing on the NYSE could give Saudi Aramco access to more liquidity, but the stricter disclosure rules in New York could also force Saudi Arabia to share information that its rulers consider sensitive, including oil reserves and forecasts on oil prices and oil demand, which would be crucial in determining how much Aramco is really worth.

Hong Kong is also still in the running for the IPO venue, alongside New York and London, according to Reuters’ sources.  

Related: Tesla Successfully Raises Funds As Cash Bleed Continues

Meanwhile, in the UK, the Financial Conduct Authority (FCA) is proposing to amend listing rules that would accommodate Aramco, but the proposal faces criticism by money managers and leaders who see the change as compromising London’s reputation.  

Aramco wants to sell just 5 percent, but under FCA rules, a company qualifies for a premium listing only if it has a minimum 25 percent free float, meaning that Aramco’s 5-percent listing would fall significantly short of qualifying unless the listing rules were changed to accommodate it.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Artwork Oil & Gas on August 14 2017 said:
    I believe that Aramco will choose NYSE sometime in Feb.
  • OilAnalyst on August 12 2017 said:
    It definitely makes much more sense for Saudi Arabia to list in NYSE as Investors will perceive higher value. As someone has commented, it is possible that the announcement is a warning shot to the Institute of Directors who are resisting the relaxation of rules in London. However, as the author highlights, ARAMCO can get much higher capital access in NYSE. JASTA is only one risk, the bigger risks are disclosure laws related to reserves. An analyst has summarized the risks well in this post- https://www.perchingtree.com/saudi-aramco-ipo-key-risks-loom-for-investors/
  • Atif on August 12 2017 said:
    Saudis are bluffing ...they want to start rumor mills so that UK activists calm down and try even harder to change rules for premium listing. Saudis will finally chose London only as they cannot take the risk in myself. Wait and watch I will be right

Leave a comment

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