London daydreams to win the listing of Saudi Aramco
The Middle East kingdom has not yet decided where to inventory its oil giant Saudi Aramco, which is expected to be the largest ever Endorse Public Offering (IPO).
In an apparent bid to secure the listing, the Financial Conduct Testimony has proposed loosening rules for state companies.
Winning the IPO would be a worst coup for Britain as it breaks from the European Union (EU).
And could also draw Oman and Abu Dhabi who have also said they may float parts of their regal oil businesses.
The FCA suggested changes would exempt companies controlled by monarch states from certain requirements on related party transactions and subduing shareholders.
FCA chief executive Andrew Bailey said: «Improving the listing regime in this way would make UK markets more reachable whilst ensuring that the protections afforded by our premium listing regulation are focused and proportionate.»
Edward Bibko, head of capital markets in Europe, Halfway East and Africa at law firm Baker McKenzie, said: «This is a skilled solution to the dilemma of Aramco, which does not meet the general provisoes regarding free-float and corporate governance.
«And there is likely demand for a new joint.
«We are aware of other large privatisations in the works that may also promote from this new category.»
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However, some wealth managers have hit out at the move.
Ashley Hamilton Claxton corporate governance superintendent at Royal London Asset Management said: «It looks like the FCA is consulting on emending the existing listing rules to accommodate the peculiarities of one company, which is not a extremely effective strategy for regulating the market as a whole.»