Two chairwomen of parliamentary committees in the British House of Commons are seeking explanations from the City regarding changes in regulation that will favour Aramco, the BBC reports.
The Saudi Aramco company is planning to list 5% of shares and London is eager to host the event. City regulation currently stipulates that companies must list more than 25% of their shares to avoid the dominance of specific investors. Now the Financial Conduct Authority (FCA) is seeking to allow “exceptions” for state owned companies, which many analysts see as a signal for ARAMCO.
Aramco’s 5% is estimated to worth $2 trillion, which means billions in fees for investment bankers, lawyers, consultants, accountants. The government also sees the ARAMCO listing as a vote of confidence to the City during the Brexit negotiations.
MP Nicky Morgan is the chairwoman of the Treasury Select Committee and Rachel Reeves is the chairwoman of the Business Select Committee. Their concern is that standards may be bent to secure the listing of a single company.
Currently, the most likely choice for ARAMCO’s listing is New York.