Saudi Aramco: UK regulator postpones decision on rule change to enable London IPO - report
01 JAN 2018
A decision on Saudi Aramco’s potential flotation in London has been delayed by the UK’s Financial Conduct Authority (FCA), The Times reported.
A consultation launched by the FCA in July was scheduled to result in a change of rules before the end of the year which would enable Saudi Arabian oil giant Aramco to float just a 5% stake rather than the minimum 25% required for a premium London Stock Exchange listing.
However, the watchdog is understood still to be considering responses to its consultation, many of which are highly critical, the unsourced item reported. A decision on the matter is now unlikely to be taken for several weeks, the report said.
Norges Bank Investment Management and Royal London Asset Management are known to be in opposition to the FCA proposal to create a new premium listing category which would position London as the major international venue for Saudi Aramco’s proposed USD 2tn flotation, the report said.
No options have yet been ruled out by the FCA, the item reported. Plans for a new listing category could proceed or could be scrapped or a new consultation could be launched to garner responses to a revised proposal, the report said.
Saudi Aramco has stated it is still on track to float this year but experts consider a 2018 IPO unlikely, the report said.