[Dubai / London / Riyadh, 30th Reuters]-Saudi Aramco's board of directors of Saudi Arabia's national oil company has determined that listing on the New York Stock Exchange is not a viable option due to too much legal risk. It became clear in the story of several related sources.
According to sources, Crown Prince Mohammed wanted to be listed on the New York market before Aramco's initial public offering (IPO) was shelved last year. US President Trump was also calling on Saudi Arabia to be listed in New York.
However, a source familiar with the IPO plan is that Reuters will be given an exemption privilege that will protect Aramco from any legal action. “Unless it is done,” he said he reached the conclusion that listing in the US would not be considered.
A source said that Aramco's privilege of exemption is "not completely impossible, but of course difficult to achieve."
Prince Mohammed is said to expect Aramco's corporate value to be about $ 2 trillion, but some insiders and banks pointed out that it was overrated. Related sources say that movements to stop listing on the New York Stock Exchange suggest that the Saudi government is more realistic than ever for IPOs.
Related sources say that the Saudi government will maintain 95% of Aramco's stake, so if it is listed in New York, in addition to the information disclosure process, various complex regulations may conflict with Saudi government's sovereignty. Pointed out. In addition to the US Terrorist Support Sanctions Act (JASTA Act) and the Oil Production Export Cartel Prohibition (NOPEC) Act, there is a risk that Aramco will be sued in the United States, and oil companies in the United States over climate change There is also a risk that Aramco will be involved in the lawsuit being accused.
Aramco's IPO was originally scheduled for 2017, but was repeatedly postponed, and now in 2020 or 21 after the acquisition of a majority stake in petrochemical giant Sabic Basic Industry Corporation (SABIC) <2010.SE>. It is expected to be.
Aramco's main listing is expected to be Riyadh, but London, Hong Kong and Tokyo are also candidates.
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