Business Report: Saudi Arabia goes public - Hawaii News Now - KGMB and KHNL

Business Report: Saudi Arabia goes public

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HONOLULU (HawaiiNewsNow) -

Saudi Arabia decides to make its privately-held state oil company, Aramco, a publicly-traded company. It will be the largest IPO – initial public offering of stock – ever.

President Trump is politely asking the Saudis to list Aramco on the New York Stock Exchange. That has consequences. Politically, Trump likes to point to the rising stock market as evidence his presidency is good. Listing Aramco will push indexes up in the future.

But under U.S. law, price-fixing is illegal. OPEC, dominated by Saudi Arabia, openly colludes on price-fixing. If Aramco becomes a U.S.-listed company, other oil companies risk criminal charges for dealing with it. Shareholder suits could be filed against U.S. oil executives. Someone hasn’t thought this through.

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