LONDON – Saudi Aramco’s share offering is likely to occur when the price of oil rises, and will herald changes in the way the traditionally closed Kingdom does business, according to an an investment adviser.
Saudi Aramco has been “disproportionately reported on,” says CEO of investment advisory firm OCO Global Mark O’Connell, given the other changes occurring across the Gulf and in Saudi Arabia in particular, which are “far more interesting.”
The flotation, he says, is aimed at “replenishing their federal reserves.” But it goes comparatively little way to furthering Saudi’s Vision 2030, the state-led drive to diversify the country’s oil-based economy, encourage international investment and reform the media image it still has as a “closed, desert kingdom.”
Saudi Aramco is estimated to be worth around £1.5 trillion, and is deliberating over which financial centre to sell 5% of its shares in. It has drawn media attention in the UK in particular, after regulator the Financial Conduct Authority proposed relaxing stock market rules in order to permit it to list in London.
Given that the price of oil is low – WTI crude was at $49 per barrel on Tuesday – Saudi Aramco may wait to float until …read more
Source:: Businessinsider – Finance