Aramco may shun direct IPO sales to US funds

Indirect method: A production facility at Saudi Aramco’s Shaybah oilfield in Saudi Arabia. The oil giant wants to avoid litigation risks by not marketing its IPO deal directly to US fund managers. — Reuters

LONDON: Saudi Aramco is considering a structure for its initial public offering (IPO) that would prevent it from marketing the deal directly to fund managers in the United States, sources said.

The state-owned oil giant wants to avoid litigation risks that could result from selling the deal to US-based institutions, according to the sources. Aramco is consulting with its bankers on the pros and cons of different deal structures, and it hasn’t made any final decision, the sources said.