1. London Stock Exchange : Britain Seeks Looser IPO Rules to lure Saudi Aramco, Worries Investors

    London Stock Exchange : Britain Seeks Looser IPO Rules to lure Saudi Aramco, Worries Investors

    Britain wants to loosen rules on listing state companies, a move that critics say is designed to help London win the lucrative IPO of Saudi Arabian oil giant Saudi Aramco but could weaken minority investor protection. The Financial Conduct Authority's proposals on Thursday would create a new listing category for companies controlled by sovereign states and come as exchanges around the world are vying to win the Aramco listing, which is expected to be the largest initial public offering (IPO) ever. But they met with criticism from British fund managers, who have already expressed concerns about Aramco's governance...

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    1. Investors believe a premium listed segment without these investor protections is not a premium segment and will not provide the protections that investors expect.
    2. No decision has been made on the venue yet.
    3. Refining the listing regime in this way would make UK markets more accessible whilst ensuring that the protections afforded by our premium listing regime are focussed and proportionate.
    4. It looks like the FCA is consulting on amending the existing listing rules to accommodate the peculiarities of one company, which is not a very effective strategy for regulating the market as a whole.
    5. We believe that investors and the market are sufficiently able to assess the additional risks arising from sovereign ownership.
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