Monday, 18 November 2019

Aramco Failure to Win Foreign Money Makes IPO Local Event - Bloomberg

Aramco Failure to Win Foreign Money Makes IPO Local Event - Bloomberg:

Two years ago, when the initial public offering of Saudi oil giant Aramco held the imagination of foreign investors, President Donald Trump felt compelled to publicly lobby for the share sale to happen in America.

“Would very much appreciate Saudi Arabia doing their IPO of Aramco with the New York Stock Exchange,” Trump tweeted in November 2017.

Today Saudi Aramco isn’t just shunning New York -- and other international exchanges -- as a listing venue, but has decided it won’t even market the IPO to American, Canadian, European or Japanese investors. Instead, Aramco plans to rely heavily on ultra-wealthy Saudis, many of whom have been pressed to invest, to get the deal done. Saudi banks are loosening lending regulations to allow locals to buy more shares.

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