• 3 minutes Could Venezuela become a net oil importer?
  • 7 minutes Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 12 minutes Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 48 mins The Tony Seba report
  • 7 hours Reuters: OPEC Ministers Agree In Principle On 1 Million Barrels Per Day Nominal Output Increase
  • 14 hours Renewables to generate 50% of worldwide electricity by 2050 (BNEF report)
  • 10 hours Kenya Eyes 200+ Oil Wells
  • 9 hours Are Electric Vehicles Really Better For The Environment?
  • 23 hours Oil prices going Up? NO!
  • 4 hours LNG Shortage on the Way
  • 1 day China’s Plastic Waste Ban Will Leave 111 Million Tons of Trash With Nowhere To Go
  • 2 hours Could Venezuela become a net oil importer?
  • 19 hours Saudi Arabia turns to solar
  • 2 days Oil prices going down
  • 10 hours OPEC soap opera daily update
  • 2 hours Sell out now or hold on?
  • 2 days Could oil demand collapse rapidly? Yup, sure could.
  • 2 days Battle for Oil Port: East Libya Forces In Full Control At Ras Lanuf
  • 2 days Tesla Closing a Dozen Solar Facilities in Nine States

Toronto Exchange Still In The Running For Aramco IPO

Riyadh

The Toronto stock exchange is still in talks with Aramco regarding the possibility of listing the shares of the Saudi energy giant on the Canadian bourse, the chief executive of the company operating it told Bloomberg. Lou Eccleston, CEO of TMX Group, said the company was in talks with the Saudi side and the Toronto bourse is “a legitimate contender.”

Aramco will list 5 percent of its stock on one or more foreign exchanges along with the Saudi bourse, and the world’s biggest trading hubs are in a fierce race to win the favor of the company that is hoping to conduct the biggest initial public offering in world history. Among them are London, New York, Hong Kong, Tokyo, and Singapore. Besides the fees that the IPO would bring in for the winner/s, the listing will also substantially enhance the reputation of the chosen exchange or exchanges.

Riyadh is betting a lot on the Aramco listing, but for now investor interest is lukewarm at best, it seems. The company’s value, according to Deputy Crown Prince Mohammed bin Salman, could be up to US$2 trillion, which means that 5 percent would fetch US$100 billion for the Kingdom. But since the staggering US$2-trillion valuation was first aired, institutional investors, fund managers, and industry professionals have been trying to find valuation metrics that add up to this figure, and have failed.

Part of the guardedness on the part of the investor world is that Aramco is one of the most opaque companies in the world. This has started to change in preparation for the listing, with the government even cutting its tax rate to 50 percent from 85 to sweeten the deal, and some expressions of interest have emerged.

Related: Why Goldman Thinks You Should Go Long On Oil

French Total is one of the companies that have declared interest, albeit a general one, with CEO Patrick Pouyanne saying at an industry event earlier this year that Total “may consider” buying into Aramco. The Saudi company is also in talks with Sinopec on a stake acquisition, but nothing is yet final.

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