Saudi Aramco IPO's picture not yet clear
Saudi Aramco's chairman has said the final form of its initial public offering (IPO) has not yet been decided
The final form of Saudi Aramco's initial public offering (IPO) has not yet been decided, according to the company's chairman Khalid al-Falih.
According to The Economist, potential complications could arise in the share sale.
Al Falih was quoted as saying: "Due to the huge size of the issue, it can only be handled by the largest stock markets like New York and London, which could lead to potential legal problems that could have unintended consequences.
"A listing in New York would raise the possibility of 'frivolous lawsuits' against the Saudi Kingdom, while a London listing may lead to 'awkward questions' about the reach of British authorities into a company's global revenues and assets."
Saudi Aramco recently outlined a financing plan under the 2030 economic vision and reform plan.
A stake of around 5% of Aramco is to be offered to the public - as well as stakes in some subsidiaries - with plans for an IPO in 2017 or 2018.
Aramco’s is valued at about $2 trillion, and its 5% stake equal to about $100 billion is targeted towards creating the initial $2 trillion PIF in the Kingdom.