Aramco can float less than 25 per cent of its shares in London- LSE
London Stock Exchange (LSE) CEO Xavier Rolet has pushed back against investors who want to see a 25 per cent minimum free float for Saudi Arabia’s state-owned oil company IF it picks London for its initial public offering.
The Saudi government has said it wants to sell a 5 percent stake in Saudi Aramco, valuing the company at as much as $2 trillion.
Speaking exclusively to Bloomberg’s Nejra Cehic in London, Rolet says there is no governance rule in place that would require the LSE to insist on any company listing at least 25 per cent of its shares on a premium market.
There is however a liquidity test to ensure that there is enough liquidity to ensure smooth trading of the underlying security and added that there has been companies in the past, especially in the US, where less than the 25 per cent minimum float happened.