- Title: Saudi Arabia favors New York for Aramco listing - sources
- Date: 11th August 2017
- Summary: NEW YORK, NEW YORK, UNITED STATES (AUGUST 11, 2017) (REUTERS) (SOUNDBITE) (English) MIZUHO AMERICAS, DIRECTOR OF FUTURES DIVISION, BOB YAWGER, SAYING: "Well it's, I would suspect it's largely, first of all, it is probably more of a political situation than anything else. If you list on New York, and you have some of the largest hedge funds in the world in the United States that will participate in the IPO and scoop up the IPO, the owners of the equity, there is a theory that goes there, you just tighten your relationship with the United States. And, if you become embroiled in some kind of political issue you may be more likely to be rescued by the United States military. So, there is that theory that goes about. It's also a prestige thing, I think, to a certain degree, to be listed on the New York Stock Exchange, or to be in the United States, is a certain degree of that also, and I'm sure the prince is eager to have that also."
- Embargoed: 25th August 2017 18:00
- Keywords: initial public offering listing Mizuho Americas IPO capital Aramco New York Bob Yawger oil Saudi Arabia
- Location: NEW YORK, NEW YORK, UNITED STATES, SHAYBAH OIL FIELDS, SAUDI ARABIA, NUR KHAN AIR BASE, AND RAWALPINDI, PAKISTAN
- City: NEW YORK, NEW YORK, UNITED STATES, SHAYBAH OIL FIELDS, SAUDI ARABIA, NUR KHAN AIR BASE, AND RAWALPINDI, PAKISTAN
- Country: USA
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA0066TPQYZ1
- Aspect Ratio: 16:9
- Story Text:Saudi Arabia favors New York for the main foreign listing of state oil giant Aramco, even though some financial and legal advisers have recommended London as a less problematic and risky option, people familiar with the matter told Reuters.
A final decision on where to stage what could be the world's largest initial public offering will be taken by Crown Prince Mohammad bin Salman - or MbS as he is known - who oversees the kingdom's economic and energy policies, the sources said.
Saudis want to float about five percent of the Aramco. Prince Mohammed has said the IPO will value the company at a minimum of $2 trillion, although some analysts' estimates are between $1 trillion and $1.5 trillion.
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