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Saudi Aramco Picks Tokyo For Its Overseas IPO Excluding London, Hong Kong

Reportedly, Saudi Aramco is considering Tokyo—rather than previously favorites Hong Kong and London—as the global destination to file its shares, as reported by The Wall Street Journal. The IPO (initial public offering) of Saudi Arabia’s oil giant’s shares will happen over two phases: An initiation will start on the Saudi stock exchange in this year, trailed by a global listing in 2020 or 2021, the news agency reported, mentioning officials and advisors familiar with the plans. Apparently, Aramco’s IPO is anticipated to be the largest globally. The company has aimed to fetch $100 Billion by selling 5% of shares in the public markets, but it is still unclear what the final sum would be, as per to the report.

A number of stock exchanges across the globe have courted Aramco to register in their markets, with London and Hong Kong extensively considered the front-runners to seal the deal. But owing to political uncertainties in the two cities rising from Brexit—the UK’s impending exit from the EU (European Union) and continued protests in Hong Kong—have lessened their attractiveness, the report stated. Still, officials from Saudi and advisors of Aramco stated that while they are likely to pick Tokyo, no final verdict has been done and all selections were still on the table.

On a similar note, earlier, Saudi Aramco was in news since its chief financial officer said that the company is ready for IPO as it posted half-year earnings. The CFO revived the outlooks for a long-awaited listing that can be a chief step toward expanding Saudi Arabia’s financial system. The state-owned firm has been shifting toward greater financial transparency since it courts global investors, and the hint that it was ready for a public offering was publicized during its first-ever earnings call. Reportedly, the company is the largest oil producer globally and generated net income of $46.9 Billion during the first half of the year.

Gordon McCoy
Gordon McCoy Author
Sr. Content Writer At Carib World News

With a Master of Science in Computer Science Degree and 5 years of active involvement in the IT domain, Gordon was appointed as Technology Department Head 2 years back at his previous company. Formerly, he was working as a journalist. He is very choosy while picking up the words to present the news reports to readers. At the same time, you will definitely get a sense of his delightful personality and commendable knowledge in the field when you read his writings on Carib World News’s platform. He loves to write on various topics such as cyber systems, data management, software development, and all that kind of stuff.

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