The potential to reach the vast Chinese investing public will eventually bring Saudi Aramco to list in Hong Kong, even if the oil giant skips over the special administrative region for its first public offering, said Charles Li, chief executive of Hong Kong Exchanges in addition to also Clearing.
“A deal in Hong Kong with the possibility of accessing, either right now or later, the Chinese investing public works wonders for Saudi Arabia, for China, for Hong Kong in addition to also for everybody else,” Li told CNBC on Wednesday.
“So, I don’t see any reason why of which shouldn’t be here, of which may not be here right away, of which may not be here on the first go, nevertheless of which will be here,” he added.
Hong Kong is actually competing against exchanges in fresh York in addition to also London — in addition to also potentially elsewhere — for what is actually required to be the entire world’s largest IPO. Saudi Aramco, valued at $1 trillion to $2 trillion, is actually widely required to float around 5 percent of its shares.
The energy company earlier told CNBC of which of which is actually fully prepared to launch its IPO from the second half of 2018, nevertheless the exact timing in addition to also the decision on where to list will depend on its sole shareholder: the government of Saudi Arabia.
A win for Hong Kong might be a welcomed boost for the city of which recently lost its crown as the global IPO leader. The financial center raised $15.6 billion through fresh listings in 2017, coming in third after fresh York in addition to also Shanghai, according to a report by EY. In 2016, Hong Kong had topped the league with $25.2 billion in proceeds, EY said.