Egypt posts record EGP629b primary surplus in 2024/25    EGP swings vs. USD in early Sunday trade    EGX launches 1st phone app    Egypt achieves record primary budget surplus of EGP 629bn despite sharp fall in Suez Canal revenues    Escalation in Gaza, West Bank as Israeli strikes continue amid mounting international criticism    Egypt recovers collection of ancient artefacts from Netherlands    Resumption of production at El Nasr marks strategic step towards localising automotive industry: El-Shimy    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, UNDP discuss outcomes of joint projects, future environmental cooperation    United Bank achieves EGP 1.51bn net profit in H1 2025, up 26.9% year-on-year    After Putin summit, Trump says peace deal is best way to end Ukraine war    Egypt, Namibia explore closer pharmaceutical cooperation    Jordan condemns Israeli PM remarks on 'Greater Israel'    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egyptian, Ugandan Presidents open business forum to boost trade    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Saudi Arabia favours New York for Aramco's foreign listing despite risks: sources
Published in Amwal Al Ghad on 12 - 08 - 2017

Saudi Arabia is preferring 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.
Their comments point to internal disagreements between what some advisers are recommending and what the crown prince wants.
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 percent of Aramco by next year is a centerpiece 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 U.S. flotation would require greater disclosure of sensitive information on Aramco.
For the valuation, much depends on the outlook for oil prices, which are currently only half what they were three years ago.
"That's why Saudi Arabia needs a higher oil price for the IPO now, to get a better value for Aramco," the source said.
The back-and-forth internal talks between the crown prince, Energy Minister Khalid al-Falih, Aramco management and the many financial and legal advisers on some of these main decisions have raised speculation that the listing, which is expected to be in the second half of 2018, could be pushed further out.
"They are still studying. When all is settled, they will present all options to MbS," said one industry source.
JASTA Risk
Aramco's lawyers caution about litigation risks associated with the U.S. Justice Against Sponsors of Terrorism Act (JASTA), two sources said.
That law, passed last September, allowed lawsuits to proceed against the Saudi government claiming it had helped to plan the Sept. 11, 2001 attacks on the United States and should pay damages to victims. Riyadh denies the allegations.
Finance Minister Mohammed al-Jadaan, a lawyer by training, is most attuned to the legal risk of the four senior government officials advising the crown prince on the listing decision, the source said.
Falih, who is also Aramco's chairman, Economy and Planning Minister Adel Fakieh and Public Investment Fund Managing Director Yasir al-Rumayyan are the other members of the crown prince's advisory committee, the source said, without elaborating on their views.
The Finance Ministry did not respond to a request for comment on the views of Jadaan.
Saudi industry sources dismissed JASTA as a reason for not listing in New York, noting that Saudi Arabia is believed to have hundreds of billions of dollars of investments in the United States already, including Aramco assets.
They say the difficulty is related more to the disclosure process and complex regulations in New York. These may legally interfere with the sovereignty of the Saudi government, which would remain the major shareholder of Aramco after the flotation.
While the London Stock Exchange has made winning the Aramco listing a priority, the NYSE has not offered any regulatory changes, a source familiar with talks between NYSE and Aramco told Reuters last month.
Britain's Financial Conduct Authority has proposed creating a new "premium" listing category for companies controlled by sovereign states which would exempt them from certain regulatory requirements. The new rules are due to be published towards the end of this year.
Source: CNBC


Clic here to read the story from its source.