Saudi Aramco sees too many risks in New York IPO, mulls local listing


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Saudi Aramco sees too many risks in New York IPO, mulls local listing

Management board of Saudi Arabia’s state-controlled energy behemoth Aramco, the No. 1 firm in the world in terms of revenue generation, had reached a decision following a closed-door meet earlier this week that public listing of the Saudi energy giant into New York stock exchange would likely to face off a raft of regulatory hurdles, at least five sources with direct knowledge regarding the boardroom meet unveiled on Friday, the 30th of August 2019, casting a gloom over Aramco’s initial public offerings, what could have been the largest IPO ever, nonetheless, the sources had also added on condition of anonymity that the Saudi Arabia’s Crown Prince, Mohammed bin Salman would roll out a final decision.

In point of fact, Saudi Crown Prince, Mohammed bin Salman had favoured NYSE for a planned public listing of Aramco last year, which was put on hold at that time citing considerable extent of geo-political bubbles alongside financial dramas over Trump’s China tariff, while lawyers of Aramco alongside some of the top-ranked government advisers of Mohammed bin Salman had also raised legal concerns over a NYSE listing of Saudi Aramco.

Meanwhile, seeking a sovereign immunity for Aramco in the NYSE, which would unlikely to come by at ease, one of participants of this week’s Aramco meet over its potential listing on NYSE, said in terms of anonymity on Friday (August 30th), “a U.S.

listing would not be considered “unless Aramco is offered sovereign immunity that protects it from any legal action. This is, of course, hard if not impossible to achieve,” while brushing aside possibilities of a NYSE listing for Saudi Aramco, one of the industry sources familiar with the Initial Public Offering said later on Friday (August 30th), “Listing in New York is no longer an option.

The likelihood of a local listing is increasing, with 1-2% of Aramco being listed locally”.