New UK listing rules set to attract state companies beyond Aramco

A worker shelters from the rain as he passes the London Stock Exchange in the City of London. - Reuters filepic

LONDON: Proposed changes to Britain’s listing regime are likely to attract a series of state-backed companies to London’s stock markets as governments in oil-rich states prepare for a wave of asset sales.

However, some investors and corporate governance groups say Britain’s move to make its capital markets attractive to state-controlled firms by loosening some of the rules may lower the quality of companies on its stock exchange and leave shareholders with less protection when things go wrong.