Saudi Arabia may pick NYSE for Aramco listing
Selling around five per cent of Aramco by next year is a centrepiece of Vision 2030.
Published: Fri 11 Aug 2017, 9:00 PM
Last updated: Fri 11 Aug 2017, 11:20 PM
Saudi Arabia favours New York for the main foreign listing of state oil giant Aramco, even though some financial and legal advisers have recommended London as a less problematic and risky option, people familiar with the matter told Reuters.
A final decision on where to stage what could be the world's largest initial public offering will be taken by Crown Prince Mohammad bin Salman - or MbS as he is known - who oversees the kingdom's economic and energy policies, the sources said.
Prince Mohammad may choose to list Aramco on the New York Stock Exchange (NYSE) for "political considerations", given the longstanding relationship between Riyadh and Washington, the sources said. However, they added that financial and commercial factors would also play a role in the choice.
Aramco said in a statement that no decision has been taken yet on the listing venue, beyond the Saudi exchange Tadawul. "All options continue to be held under consideration. There is no timetable requirement for an immediate definitive decision," Aramco said in response to a Reuters request for comment.
Selling around five per cent of Aramco by next year is a centrepiece of Vision 2030, an ambitious reform plan to diversify the Saudi economy beyond oil which is championed by Prince Mohammad.
Several advisers have recommended London for the main listing outside Saudi Arabia, sources familiar with the matter told Reuters last month, partly due to concerns that a US flotation would require greater disclosure of sensitive information on Aramco.
One senior industry source, however, said New York is likely to be the favoured option for the Saudi government and Prince Mohammad. "That is broadly correct," the source said, adding: "All awaits on the final shareholder decision."