Battle back on for world’s biggest float

London squares up to New York again for £1.7 trillion Aramco listing

LONDON and New York are to lock horns in a renewed battle for the world’s biggest stock market float after Saudi Aramco restarted plans for a listing.

The two cities are frontrunners to host Aramco – previously valued at £1.7 trillion, twice the size of Apple.

Proposals to take the firm public triggered fierce rivalry but were put on hold last year because the Saudis were worried about getting a good price.

But the plans have been relaunched, with investment banks Lazard and Moelis hired to look at options.

Winning the business would be seen as a huge coup for Britain, and Treasury ministers are believed to be preparing a new action plan to woo Aramco chiefs, including chairman Khalid A. Al-Falih (pictured) in Riyadh.

Maplecroft consultant Torbjorn Soltvedt said: ‘This is a big win, the world’s most profitable company, it has that kind of prestige and is unique. It’s a huge deal, and a lot of people will want in on the action.’

Last year, Aramco’s plans to list 5pc of its shares led to a fierce race between then Prime Minister Theresa May and President Donald Trump.

Trump chose to make his first state visit to Saudi Arabia and petitioned the Saudi King on Twitter, while May travelled to the oil-rich country with London Stock Exchange bosses to personally lobby the oil minister.

At the same time the Financial Conduct Authority relaxed listing rules in London to attract the Saudis, to the anger of some investment organisations. Now the Government is preparing a renewed charm offensive in the battle for the float, which is touted for 2020 or 2021. Former chancellor Philip hammond visited Saudi Arabia last month with ex-Lazard chairman Sir Ken Costa, the Government’s special envoy to the kingdom.

The investment banking guru was originally brought on board by ministers to advise on the listing, and has said the UK should be the ‘place of choice’. A listing of this size in the UK would be a major boost to the City after Brexit uncertainty, bringing big fees for banks and City law firms.

Previous estimates have put fees paid to lawyers, accountants, consultants and bankers assisting on the offering at up to £1bn.

Goldman Sachs is doing preparatory work for the flotation and other major banks are scrambling to work on the listing.

The launch of a £10bn bond by Aramco this year has provided renewed optimism the listing can go ahead. Goldman, Aramco and the Treasury declined to comment.