The board of Saudi Aramco has determined that listing the state energy giant in ...
DUBAI/LONDON/RIYADH - The board of Saudi Aramco has determined that listing the state energy giant in New York would carry too many legal risks to make it a realistic option, five sources said, although they said a final decision lay with Saudi Arabia’s crown prince.
One source familiar with the IPO plan told Reuters the board, made up of cabinet ministers and Aramco executives, had concluded at an August meeting that a U.S. listing would not be considered “unless Aramco is offered sovereign immunity that protects it from any legal action.”Like other sources who spoke to Reuters, he asked not to be named because of sensitivities surrounding the fate of the IPO which the crown prince hopes will value the company at $2 trillion.
“Listing in New York is no longer an option,” one industry source familiar with the IPO process said. NOPEC legislation would make it illegal for foreign nations to work together to limit fossil fuel supplies and set prices, opening Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries to U.S. legal challenges.
“The company is ready and timing will depend on market conditions and be at a time of the shareholder’s choosing,” it added, without elaborating.
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