Saudi Arabia said to favor New York for Aramco’s IPO despite risks: report

Saudi Arabia favors New York for the main overseas listing of state oil giant Aramco, even though some financial and legal advisers have recommended London as a less risky option, Reuters reported citing sources familiar with the matter.

Crown Prince Mohammad bin Salman will take the final decision on the venue of what is believed could be the world’s largest initial public offering (IPO).

Saudi Aramco said in a statement that no decision is final yet on the foreign listing venues.

“All options continue to be held under consideration. There is no timetable requirement for an immediate definitive decision," Aramco was quoted as saying in response to a request for comment from Reuters.

As part of Vision 2030 plan to diversify the economy beyond oil, Aramco plans to sell up to 5 percent of the company by next year.

A number of advisors have recommended London for the main listing outside the Kingdom due to concerns that a U.S. flotation would require greater disclosure of sensitive information on Aramco, Reuters reported last month.

One senior industry source, however, said New York is likely to be the favored option for the Saudi government and the Crown Prince.