Wednesday 11 September 2019

Large Aramco IPO to hit rival energy firms: Woodside CEO - Reuters

Large Aramco IPO to hit rival energy firms: Woodside CEO - Reuters:

A large share sale of Saudi oil giant Aramco will suck out capital from rival energy firms as investors will reallocate funds within their shrinking pot for fossil fuel stocks, according to the chief executive of Australia’s Woodside.

Peter Coleman said the challenges of Aramco’s initial public offering were becoming an important discussion topic among investment bankers as the kingdom has revived its idea of raising up to $100 billion via a share listing of its energy giant.

“What’s your alternative for investment? Is it a U.S. treasury bond or a mid-cap (oil and gas) player in the United States?” Coleman, who heads Australia’s largest independent oil and gas firm, said in an interview with Reuters on the sidelines of the World Energy Congress in Abu Dhabi.

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