Saudi Arabia prefers New York for Aramco’s IPO

Saudi Arabia prefers New York for Aramco’s IPO
Aramco is the largest oil company in the world

Riyadh - Mubasher: Reuters reported on Friday that Saudi Arabia is favouring the New York Stock Exchange (NSE) for the main foreign listing of state oil giant Aramco, as per unnamed sources.

The news agency added that some financial and legal advisers have recommended London as a less problematic and risky option.

However, it seems like a final decision is yet to be made, regarding where to stage what could be the world's largest initial public offering (IPO).

Aramco said in a statement that no decision has been taken yet on the listing venue, beyond the Saudi Stock 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.

Apart from New York and London, Hong Kong is also a contender, for the awaited IPO of around 5% of the world’s largest oil company, Saudi Aramco.

Seemingly valuation stands as an issue, as the Saudi government will value Aramco at a minimum of $2 trillion, while some analysts' estimates are between $1 trillion and $1.5 trillion.

Source: Mubasher