Saudi Aramco IPO un­likely to re­quire rule changes

Kuwait Times - - BUSINESS -

Saudi Aramco’s planned flota­tion is un­likely to re­quire any ma­jor changes to Sau­dia Ara­bia’s se­cu­ri­ties rules, the vice chair­man of the king­dom’s mar­ket reg­u­la­tor said. The king­dom’s state oil gi­ant is tar­get­ing 2018 for what is ex­pected to be the world’s big­gest ever ini­tial pub­lic of­fer­ing, with a list­ing on both its home ex­change and a for­eign mar­ket among the op­tions be­ing dis­cussed.

The move is part of Saudi Ara­bia’s am­bi­tious plans to di­ver­sify its econ­omy away from oil, un­der the ban­ner of Vi­sion 2030, which in­cludes a greater in­volve­ment of the pri­vate sec­tor and im­prov­ing the ef­fi­ciency of state-owned com­pa­nies.

Should a dual list­ing hap­pen, some work might be needed in­volv­ing the man­age­ment of shares between two mar­kets, such as the me­chan­ics on the shar­ing of in­for­ma­tion on trades, Mo­hammed bin Ab­dul­lah Elkuwaiz of the Cap­i­tal Mar­ket Au­thor­ity (CMA) told re­porters on the side­lines of a con­fer­ence yes­ter­day. Saudi Ara­bia has never be­fore had a dual list­ing in­volv­ing a com­pany listed on its bourse, which is known as the Tadawul.

“If there is a de­ci­sion to list in an­other ex­change, whether it is Aramco or any other com­pany, there would be some­thing that will need to be done, but most of this is more on the op­er­a­tions side not the reg­u­la­tory side,” he said. Ul­ti­mately it will de­pend on the struc­ture which Aramco de­cides to em­ploy on its list­ing, but from what the CMA is an­tic­i­pat­ing there would be no need for ad­di­tional rule changes, Elkuwaiz added. — Reuters

US dol­lar down against KD to 0.304

The ex­change rate of the US dol­lar went down yes­ter­day against the Kuwaiti di­nar to reach KD 0.304 while the rate of the euro rose to KD 0.327 com­pared with Mon­day, said the Cen­tral Bank of Kuwait (CBK). The CBK said that the rate of the pound ster­ling went up to KD 0.388, the same case with Swiss Franc which stood at KD 0.302.

Weak­ness in the Turkish lira could start to drive up prices and knock the cen­tral bank off its tar­gets in the first quar­ter of next year, but the im­pact will de­pend on the pace of eco­nomic ac­tiv­ity, Gov­er­nor Mu­rat Cetinkaya said yes­ter­day. At a news con­fer­ence on the cen­tral bank’s mon­e­tary and ex­change rate pol­icy for 2017, Cetinkaya said the im­pact of forex volatil­ity on in­fla­tion had so far been limited, but said the up­wards risks to prices had in­creased. The lira has hit a series of record lows in re­cent weeks, hit by a resur­gent dol­lar as well as un­cer­tainty about the out­look for Turkey’s do­mes­tic pol­i­tics and se­cu­rity. The bank’s rate hike last month, its first in al­most three years, has done lit­tle to ease the pain.

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