Singapore exchange pitches for Saudi Aramco IPO

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Singapore is among the six stock exchanges pitching for the non-domestic part of the upcoming listing of the world’s largest oil company, Saudi Aramco, which is targeted for later in 2017 or for 2018 and could raise a total of as much as $106 billion from a five-per cent float, making it the world’s largest IPO so far.

Saudi Aramco plans to list on the Saudi stock exchange in Riyadh, but also aims to sell shares on at least one bourse outside the country. That choice pits the top global financial centers, London and New York, against each other, while Hong Kong, Tokyo, Singapore and Toronto are also on the top contender list.

The initial public offering (IPO) would make the company the largest publicly traded one in the world with a market capitalisation over $2 trillion, which is why all contenders are pitching quite aggressively to be chosen as IPO destination for the dual listing.

The brownie points for Singapore for such an IPO are mainly the fact that the city state is the biggest oil trading center in Asia and its exchange has a relatively high liquidity for Asia. While the Singapore Exchange is the smallest of the bourses competing to list Saudi Aramco shares, it is said to be planning a slew of incentives to lure a listing. This includes proposals by one of its state investment companies to become a cornerstone investor in the Saudi oil giant.

The reason for the dual listing is that In the Saudi financial market, foreign participation remains restricted, and there are also question marks on transparency.

The share sale is a key part of Saudi Arabia’s broader road map to reduce the country’s dependence on oil. Plans are to transform Aramco from an oil company into an energy and industrial conglomerate.

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Reading Time: 2 minutes

Singapore is among the six stock exchanges pitching for the non-domestic part of the upcoming listing of the world’s largest oil company, Saudi Aramco, which is targeted for later in 2017 or for 2018 and could raise a total of as much as $106 billion from a five-per cent float, making it the world’s largest IPO so far.

Reading Time: 2 minutes

Singapore is among the six stock exchanges pitching for the non-domestic part of the upcoming listing of the world’s largest oil company, Saudi Aramco, which is targeted for later in 2017 or for 2018 and could raise a total of as much as $106 billion from a five-per cent float, making it the world’s largest IPO so far.

Saudi Aramco plans to list on the Saudi stock exchange in Riyadh, but also aims to sell shares on at least one bourse outside the country. That choice pits the top global financial centers, London and New York, against each other, while Hong Kong, Tokyo, Singapore and Toronto are also on the top contender list.

The initial public offering (IPO) would make the company the largest publicly traded one in the world with a market capitalisation over $2 trillion, which is why all contenders are pitching quite aggressively to be chosen as IPO destination for the dual listing.

The brownie points for Singapore for such an IPO are mainly the fact that the city state is the biggest oil trading center in Asia and its exchange has a relatively high liquidity for Asia. While the Singapore Exchange is the smallest of the bourses competing to list Saudi Aramco shares, it is said to be planning a slew of incentives to lure a listing. This includes proposals by one of its state investment companies to become a cornerstone investor in the Saudi oil giant.

The reason for the dual listing is that In the Saudi financial market, foreign participation remains restricted, and there are also question marks on transparency.

The share sale is a key part of Saudi Arabia’s broader road map to reduce the country’s dependence on oil. Plans are to transform Aramco from an oil company into an energy and industrial conglomerate.

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