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Stock markets vie to host Saudi's Aramco IPO

Published 14/09/2017, 11:48
© Reuters.  Stock markets vie to host Saudi's Aramco IPO

LONDON (Reuters) - Saudi Arabia's state-owned oil company, Aramco, is set to stage what could be the largest initial public offering in history next year and stock exchanges around the world are competing for the chance to list its shares.

A Reuters graphic shows the potential range of the value of Aramco's listed shares against the average 2016 market capitalisation of listed companies on the various exchanges as well as the advantages and disadvantages to Aramco of each one.

See the graphic here: http://tmsnrt.rs/2jr9BCY

Saudi officials have said the company will offer up to 5 percent of Aramco in the IPO. It is expected to list some shares on Saudi Arabia's stock exchange, with the rest on at least one overseas exchange.

Among Aramco's suitors include the New York, London, Hong Kong, Tokyo and Toronto stock exchanges.

The IPO could raise as much as $100 billion, a large chunk of the $132.5 billion raised globally from IPOs in 2016, according to consultancy EY.

Saudi officials have said Aramco could achieve a $2 trillion valuation, though they have not yet released financial information to substantiate that claim, which some analysts have cast doubt on.

Listing part of the oil giant is a centrepiece of Vision 2030, a plan to diversify the Saudi economy beyond oil, which is championed by Crown Prince Mohammed bin Salman.

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