Friday, 8 September 2017

MPs demand answers on $2tn Saudi Aramco listing



The chairwomen of two Parliamentary committees have asked the City regulator to explain proposed rule changes seen as favouring the world's largest oil company, Saudi Aramco.

 
It follows reports Saudi Aramco plans to list 5% of its shares in London or another stock market in the West.


UK rules state more than 25% of shares should be listed to stop a single shareholder having too much dominance.


But proposals put forward by the FCA in January could allow for exceptions.


The regulator has proposed waiving a number of requirements for sovereign-owned companies.
These include the need to provide independent shareholders with their own separate vote on the appointment of independent directors, which can potentially delay the process by up to 90 days.


An FCA consultation on the proposed changes will close on 13 October and the regulator will make a policy statement before the end of the year.


According to reports, Saudi Aramco could be valued at $2tn (£1.5tn) when it lists - a huge price tag that would also generate hundreds of millions of dollars in fees for investment bankers, lawyers and other professional firms involved in stock market flotations.




BBC      News.