UK fund opposes LSE bending rules for Saudi Aramco’s IPO

Any attempt by London Stock Exchange (LSE) to change listing rules so as to win part of Saudi oil producer Saudi Aramco’s potential initial public offering would be "highly inappropriate", fund manager Royal London said according to a Reuters report.

The Financial Conduct Authority (FCA), which regulates the financial services industry in the UK, and LSE are developing a new listing structure to facilitate lure the state-run oil producer and help it avoid the difficult corporate governance requirements of a primary listing, without being seen as second class.

"We will be lobbying strongly against any concessions being granted should there be a formal attempt to IPO Aramco in the UK … we fear this precedent could lead to a slippery slope," Ashley Hamilton Claxton, corporate governance manager said.

Other exchanges are racing for a share in the planned initial public offering (IPO), which was estimated to be about $100 billion in size, in various cities – including New York, Tokyo, Hong Kong, Toronto, Singapore, Argaam earlier reported.

Saudi Arabia is planning to list up to 5 percent of the world's largest energy producer in Riyadh, and in one or more international markets.