London missing out on Aramco IPO could be a blessing in disguise

Sep 10 14:09 2019 Print This Article

Saudi Arabia is getting deadly serious about the stock market flotation of state oil giant Aramco, just not in London.

Once tipped as a potential host for what could be the world’s largest initial public offering, Brexit chaos and the prospect of Jeremy Corbyn seizing power have significantly diminished the City’s chances of becoming the international home for Aramco’s shares. Missing out would be a blow to prestige, but it could also be a blessing in disguise.

Aramco – which the kingdom’s Crown Prince Mohammed bin Salman believes is worth $2 trillion – would tether the overall performance of the London Stock Exchange’s main market dangerously to the unpredictable price of crude along with the decisions of OPEC and its allies. Despite the cartel striking a pact with Russia to restrict output and boost prices, Brent crude trading at around $60/b is still at a level almost 40% lower than it was five years ago.

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The Barrel

S&P Global Platts provides market insights so people can make more informed trading and business decisions.. They're the leading independent provider of information and benchmark prices for the commodities and energy markets. Customers in over 150 countries look to their expertise in news, pricing and analytics to deliver greater transparency and efficiency to markets. S&P Global Platts coverage includes oil and gas, power, petrochemicals, metals, agriculture and shipping. S&P Global Platts provides critical information for the commodities & energy markets to make physical commodity markets more transparent and efficient. S&P Global Platts blog, The Barrel, provides the essential perspective on global commodities.

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