• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 1 hour Satellite Moons to Replace Streetlamps?!
  • 21 hours US top CEO's are spending their own money on the midterm elections
  • 1 hour EU to Splash Billions on Battery Factories
  • 7 hours U.S. Shale Oil Debt: Deep the Denial
  • 7 hours The Balkans Are Coming Apart at the Seams Again
  • 23 hours OPEC Is Struggling To Deliver On Increased Output Pledge
  • 7 hours The Dirt on Clean Electric Cars
  • 18 hours Uber IPO Proposals Value Company at $120 Billion
  • 9 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 21 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 1 day Petrol versus EV
  • 24 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 1 day 10 Incredible Facts about U.S. LNG
The Implications Of A Fractured U.S., Saudi Alliance

The Implications Of A Fractured U.S., Saudi Alliance

With tensions between the United…

Hurricane Michael’s Impact On Gasoline Demand

Hurricane Michael’s Impact On Gasoline Demand

Hurricane Michael had a significant…

Saudi Stock Market Prepares New Rules For Aramco Listing

Aramco Oil

New financial market rules aimed at preventing major price drops in newly listed companies on Saudi Arabia’s Tadawul exchange will be ready by the end of this June, in anticipation of what is touted to be the largest IPO in history, of Aramco.

The head of the Saudi Capital Market Authority told Reuters it will issue price stabilization guidelines ahead of Aramco’s listing and after that “we can then say that the Saudi market will be fully amenable to accommodate an offering of the size of Saudi Aramco, or indeed of any size,” Mohammed El Kuwaiz said.

The price stabilization mechanism protecting newly issued stocks from dropping suddenly involves underwriters of the IPO buying some of the company’s shares as a means to boost its price. The mechanism also kicks in if trade in the newly listed company’s stock is much weaker than expected.

Clouds have been gathering over Aramco’s listing almost from the start.

In addition to investor skepticism towards investing in one of the least transparent oil companies in the world, there have been problems with picking the location for the international listing of the company.

London, New York, Tokyo, and Hong Kong are all on the short list but the chances of a listing taking place in New York this week dropped sharply after a federal judge ruled in favor of lawsuits against Saudi Arabia for its alleged involvement in the 9/11 attacks.

In addition to the choice of venue there is the issue of whether there will even be an international listing. The latest official comments are that it will be delayed, along with the primary listing on Tadawul, which was supposed to take place in the second half of this year but has been postponed for 2019.

CMA will later this year start working on rules for dual listings on Tadawul and another exchange—also part of the preparations around Aramco’s IPO. These should be ready by early 2019, El Kuwaiz said.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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