Tokyo bourse, Aramco considering group to study IPO listing in Japan
Aramco and the Tokyo Stock Exchange (TSE) are considering setting up a joint group to study a potential stock market listing of the Saudi Arabian state oil giant in Japan, the governments of Japan and Saudi Arabia said, as bourses in Asia and elsewhere attempt to win the $100 billion listing.
A deal to look into establishing a joint study group for the listing was one of several economic cooperation agreements signed by the two governments on Monday, the second day of King Salman’s visit to Japan, the governments said in a joint statement.
Saudi authorities plan to list up to 5 per cent of the world’s largest oil producer on the Saudi stock exchange in Riyadh, the Tadawul, and also one or more international markets. New York, London, Hong Kong, Singapore and Toronto, besides Tokyo, are vying for what could be the world’s largest IPO, potentially raising as much as $100 billion.
While the Japanese government is keen to have Aramco shares trade in Tokyo, bankers and lawyers say the Tokyo market is unlikely to get the nod because of strong competition and due to Japanese investors being less receptive to energy companies than some other sectors such as technology. Yen volatility is another factor.