Don’t throw Aramco back into the water

There’s mounting opposition in the City to bringing the flotation of the Saudi state oil giant, Aramco, to London. Yet this listing would be “a huge Brexit boost” to Britain, says Alex Brummer. “We mustn’t let it get away.” Doubts have been raised about the initial $2trn valuation the Saudis placed on the group. But given the scale of the Saudi oil sector, the importance of Aramco is irrefutable, “whatever the accounting niceties”. Another problem is London Stock Exchange rules: they require companies seeking “premium” listings to offer at least 25% of their shares, whereas Aramco plans to float just 5%. The rule is intended to protect investors from unscrupulous owners; but comparing Saudi Aramco to troublesome “outliers” such as ENRC and Bumi is “barmy”, and the LSE ought to be able to come up with a “safe derogation of listing rules” to accommodate Aramco. No one wants a float like Snap’s in New York, in which minority investors have no say. “But having almost landed this large fish, it would be witless if the City threw it back in the water.”