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Trump backs N.Y. for Saudi Aramco listing

Reuters WASHINGTON/KHOBAR, Saudi Arabia (Reuters) — U.S. President Donald Trump publicly appealed on Saturday for Saudi Arabia to list national oil company Saudi Aramco’s shares in New York, intervening in a battle among the world’s top stock exchanges.

“Would very much appreciate Saudi Arabia doing their IPO of Aramco with the New York Stock Exchange,” Trump wrote on Twitter. “Important to the United States!”

Trump did not say why he raised the issue at this time or whether he was responding to any information about the NYSE’s bid. But by describing the listing as a priority for Washington, he could help sway the Saudis’ decision.

The Saudi government, seeking to raise money as low oil prices strain its finances, plans to sell about 5 percent of Aramco next year in a sale officials say could raise about $100 billion, making it the world’s largest initial public offer ever.

Saudi authorities have said they intend to list Aramco in Riyadh and on one or more foreign exchanges, setting off a competition among New York, London, Hong Kong, Tokyo and other bourses.

While Trump’s tweet named the New York Stock Exchange, it did not mention rival Nasdaq Inc, which is also vying for the Aramco listing.

“Generally, public servants should be impartial, not give preferential treatment to anyone, and avoid endorsements,” said Scott Amey, general counsel for the government ethics watchdog Project on Government Oversight in Washington.

Nasdaq replied to Trump in a tweet, saying it agreed the United States was the “best destination for global companies” but that Aramco belongs on Nasdaq “with the 5 most valuable operating companies in the world.”

Awaiting a decision

Nearly two years after announcing their plan to sell Aramco shares, Saudi officials say they have not yet decided on foreign listing venues.

“President Trump’s tweet indicates that, from the White House’s perspective at least, a public listing of Aramco is not as dead as some recent reports indicated,” said Bob McNally, president of Washington-based energy market and policy consultant Rapidan Energy Group.

“The tweet suggests the White House believes Saudi Arabia may be approaching a decision on where to list and wishes to either claim credit or push a possibly wavering Saudi Arabia for a New York listing,” McNally added.

Exchanges hosting Aramco can look forward to a boost in fee income from trading the stock. The prestige associated with the company may help them attract more big listings, including IPOs of other state companies from the Gulf as governments there sell assets in an era of cheap oil. Speech

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