• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 2 hours Australian Voters Reject 'Climate Change' Politicians
  • 6 hours Australia Election Summary: "This was the Climate Change Cult Election, and the Climate Change Cult Lost"
  • 10 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 1 hour Shale to be profitable in 2019!!!
  • 28 mins Global Warming Making The Rich Richer
  • 14 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 14 hours California Threatens Ban on ICE Cars
  • 14 hours IMO2020 To scrub or not to scrub
  • 14 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 15 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 10 hours Some Good News on Climate Change Maybe
  • 6 hours Misunderstanding between USA and Iran the cause of current stand off, I call BS
  • 6 hours DUG Rockies: Plenty Of Promise, Despite The Politics
  • 3 hours Shell ‘to have commercial wind farms’ by early 2020s

Top Legislators Question FCA Over Aramco Listing Rules

LSE

The chairs of two UK parliament committees have approached the Financial Services Authority over a proposal to relax LSE listing rules in a bid to win the business of Saudi Arabia when it floats Aramco next year.

Nicky Morgan, chair of the Treasury Select Committee, and Rachel Reeves, head of the Energy and Industrial Strategy Committee, wrote to the watchdog with a number of questions regarding whether FCA’s proposal for a consultation to look into a change of listing rules was in any way motivated by interest expressed by Aramco’s management in floating 5 percent on the London Stock Exchange.

The FCA announced the idea of changing the rules for Aramco in July. FCA’s proposal essentially comes down to creating a new category within its rules for premium listings, “to cater for companies controlled by a shareholder that is a sovereign country.” The aim is to convince Aramco to go for the premium, rather than the standard, listing. This, however, goes against current rules that require any business opting for the premium listing to float at least 25 percent of its stock.

The proposal drew criticism from corporate governance bodies, including the Institute of Directors, which last month came out with a press release saying the market watchdog’s proposal did little to address the risks and challenges surrounding sovereign-controlled companies which include the potential for politically-motivated ownership interference over the company by the state apparatus. National governments are also in a strong position to undermine the rights of minority shareholders and the authority of the Board of Directors at such enterprises.”

Aramco’s IPO is vital for the Vision 2030 economic transformation program initiated by the Crown Prince of Saudi Arabia, Mohammed. The company has been valued at over US$1 trillion by Riyadh, although external valuations are substantially below this figure.

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