Aramco warned of litigation risks in NYSE listing: FT

Although a listing on the New York Stock Exchange (NYSE)--besides the Saudi Stock Exchange (Tadawul)—has emerged as a favored option, Saudi Arabian Oil Co.’s (Aramco) lawyers have warned the Kingdom that a New York listing poses the greatest litigation risk of any jurisdiction, Financial Times reported.

Saudi Arabia is preparing to sell about 5 percent of the world’s largest oil company and wants at least one exchange other than its own Tadawul for the initial public offering (IPO) that is estimated to raise as much as $100 billion.

White & Case, Saudi Aramco’s legal advisory on the proposed IPO, has warned the oil company and other authorities over the US’s litigious culture, the FT report said, citing four people familiar with the matter.

The second best option is premium category listing at London Stock Exchange (LSE), the report added.

Meanwhile, Reuters said that LSE is now one of the front-runners to gain part of the IPO as the stock exchange is working on a new type of listing structure that may attract Saudi Aramco.

Stock exchanges in New York, London, Tokyo, Singapore, and Hong Kong have stepped up efforts to secure what expected to be the world’s largest listing.

 Saudi Prince Mohammed bin Salman, the head of Saudi Arabia's oil affairs, is expected to make a final decision within weeks.