Saudi Aramco advisers lean towards London for IPO: report

Saudi Aramco's advisers have recommended London for the company’s initial public offering (IPO), sine U.S. disclosure rules remain a concern for Saudi authorities, Reuters reported, citing sources familiar with the matter.

Crown Prince Mohammad bin Salman, who is overseeing the Kingdom’s economic reforms, will made the final decision on the venue for what is expected to be the world's biggest IPO, the sources said.

Saudi Aramco plans to offer up to 5 percent of its shares, which is expected to raise $100 billion.

Saudi authorities are taking into consideration the Kingdom’s Vision 2030 to diversify beyond oil and financial considerations, as well as the company and shareholders’ interests.

The Advisors’ views on the relative merits of London and New York for the listing are being considered by Aramco and a final proposal could be presented to the government in the fourth quarter, the sources told Reuters.

London’s Financial Conduct Authority plans to create a new listing category for companies controlled by sovereign states by the end of this year, which is a clear sign it welcomes Saudi Aramco’s IPO, a move that is believed to improve London's chances of winning the IPO.

Aramco is less enthusiastic about listing on a third exchange, possibly one in Asia, and may prefer to stick to a dual-listing process that involves the Saudi Stock Exchange (Tadawul) and London Stock Exchange, one of the sources said.

Bankers expect to get more clarity on Aramco's listing plans at a conference organized by Saudi Arabia's Public Investment Fund (PIF) on Oct. 24 to 26 in Riyadh, one source said.

Aramco’s executives, including its CEO, are scheduled to meet on Aug. 3 in London for a regular review of ongoing business activities, another source said.