• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 8 minutes The Inconvenient Truth Of Electric Cars
  • 12 minutes The Plastics Problem
  • 10 hours Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 3 hours To be(lieve) or Not To be(lieve): U.S. Treasury Secretary Says U.S.-China Trade Deal Is 90% Done
  • 4 hours SHALE MAGIC: Let the oil flow: US to lead oil output growth through 2030: ConocoPhillips chief economist
  • 41 mins EIA reports 12 mm bbls Inventory draw . . . . NO BIG DEAL . . . because U.S. EXPORTED RECORD 12 MILLION BARRELS DAY OF CRUDE + PETROLEUM PRODUCTS ! ! ! THAT'S HUGE !
  • 5 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 10 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 12 mins Its called reality: Economic, policy challenges to make Asia's energy transition painfully slow
  • 18 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 5 hours On the hobby side of things
  • 22 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 12 hours Cap and trade: What could Oregon’s carbon policy cost you?
  • 16 hours Oil Demand Needs to Halve: Equinor
Philadelphia Refinery Explosion To Boost Gasoline Prices

Philadelphia Refinery Explosion To Boost Gasoline Prices

The explosions at the Philadelphia…

The LNG Shipping Market Is Set For A Bull Run

The LNG Shipping Market Is Set For A Bull Run

In contrast to the volatile…

Warnings Mount Against Rule-Bending For Aramco IPO In London

London

Royal London, an asset manager, has warned against the London Stock Exchange changing initial public offering rules to better suit the tastes of Riyadh, which is preparing to take Aramco, the world’s biggest oil company by production, public.

The fund’s corporate governance manager, Ashley Hamilton Claxton, said in a statement that “Any attempt to bend the listing rules in order to facilitate the IPO of Saudi Aramco is highly inappropriate and flagrantly ignores the principles which the UK’s listing rules were designed to defend. While the listing would be a prize asset on the exchange due to the sheer size of the firm, the attempt to list just 5 per cent of the total share capital flies in the face of what is acceptable.”

The latter part of the statement refers to the requirement of floating at least 25 percent in a premium listing and comes in response to news that the LSE and the Financial Conduct Authority are at the moment working on changing the rules—a change which would accommodate the Aramco listing as premium rather than secondary.

The London Royal statement also follows on the heels of a similar warning from Financial Times associate editor John Gapper, who wrote yesterday that “The point of listings rules is to attract as many companies as possible while ensuring they are trustworthy. There is a tension between the two — laxer rules can lure more issuers in a race to the bottom — but in the end, as the Financial Conduct Authority noted recently, “high corporate standards [lead] to high levels of investor confidence and, in turn, a vibrant market.”

Related: Saudi America – How New Tech Is Creating Another Oil Boom

Aramco would certainly be a tasty morsel for any stock exchange, but the short list to date seems to have narrowed down to NYSE and LSE. It may well be that the London exchange comes out a winner.

Earlier this month, a legal adviser to Riyadh said, as quoted by the FT, that listing Aramco in New York will come with a risk of litigation, after the passing of the Justice Against Sponsors of Terrorism Act, which allowed families of the victims of the 9/11 terrorist attack to sue Saudi Arabia. In fact, in March this year, the families of 850 of the victims did start a class action suit against the Kingdom.

Royal London’s Claxton said the fund manager will “lobby strongly” against any kind of special treatment for the Saudi company.

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