(When members of Saudi Arabia’s royal family visited Japan last September and again in March, the Asian country made sure at least one message got through: please list Saudi Aramco in Tokyo.
In September, the prime minister Shinzo Abe delivered the message himself to then deputy crown prince Mohammed bin Salman, while Japan Exchange Group’s chief executive, Akira Kiyota, tried to win King Salman’s approval in March. The conversations never stopped, with Tokyo executives visiting Saudi Arabia in October, December and again in March to explain why Japan would be ideal for the world’s largest oil company to go public.
“It’s going to be one big epic event,”Mr Kiyota said at the exchange headquarters in Tokyo. “If all goes well, we want other foreign companies to opt for Tokyo as a destination for their initial public offerings.”
Saudi Aramco, which is currently fully owned by the Saudi Arabian government, is prepping to go public in a deal that will value the company at as much as US$1.78 trillion, Mr Kiyota said. Its market capitalisation will dwarf that of Apple, currently the world’s largest company, valued at about $777 billion. New York, London, Tokyo and Hong Kong are among several exchanges vying for the oil major’s attention.
While New York and London are considered top contenders of what is expected to be the biggest IPO in history, Tokyo is betting Saudi Aramco will list at least a portion of its shares in Asia to broaden its investor reach. Altogether, the IPO could be as big as $89bn, Mr Kiyota said.
In Asia, Tokyo’s natural competitor is Hong Kong, which has over the past decades established itself as the financial hub of the region, bulging with money from global investors. Tokyo, once the unquestionable financial centre with more than 120 foreign blue-chip companies listed, lost ground as its asset price bubble popped in the early 1990s.
To Mr Kiyota’s relief, Aramco has given positive feedback during the many meetings it held with Tokyo executives, although executives did question why the number of foreign companies trading on the Japanese exchange has continued to decrease over the years. Only five foreign companies trade on the Tokyo Stock Exchange.
“Since the bubble burst, the Japanese economy’s existence as a capital market gradually weakened, making the cost to list shares here seem like a waste,” Mr Kiyota said. “But when listing one to ¥2tn worth of shares, the cost would be small.”
Even during its heyday, foreign companies used Tokyo listing as a means to raise brand awareness in the region, often by offering a small amount of shares, according to Mr Kiyota. BNP Paribas and Boeing are among companies that used to trade on the Tokyo exchange but were delisted in 2009 and 2008, respectively.
Saudi Aramco would set itself apart with the sheer size of its listing and pave the way for Tokyo to be acknowledged as one of the “most favoured” destinations for IPOs, Mr Kiyota said. There would be ample liquidity for investors to trade shares, unlike previous cases where listing by a foreign company was often more of a formality than for raising a meaningful sum of money.
One of the things Kiyota has stressed to the oil giant is how different the investors accessible through Tokyo would be compared to those in Hong Kong.
“If it lists in New York, London and then in Hong Kong, they’ll be seeking money from the same pool of investors,” Mr Kiyota said. “Tokyo is a different market. It has a lot of money on its own, held not by just institutional investors but a significant number of retail investors.”
Tokyo is not the only place pulling for Saudi Arabia’s attention. The United Kingdom market regulator on Thursday revealed it may ease listing requirements for companies controlled by a sovereign country, as the London Stock Exchange tries to woo Saudi Aramco to Britain.
The Saudi Arabian company is expected to choose the destination for its IPO by the end of this year, preparing to go public around next autumn, according to Mr Kiyota. Although no promises have been made on whether Saudi Aramco will opt to list any of its shares in Tokyo, Kiyota has his hopes. Aramco declined to comment.
“We have an edge against Hong Kong in terms of market size,” he said. “This is an opportunity for Japan to win the attention of a number of big foreign companies looking to go public.”
UAE rugby season
FIXTURES
West Asia Premiership
Dubai Hurricanes v Dubai Knights Eagles
Dubai Tigers v Bahrain
Jebel Ali Dragons v Abu Dhabi Harlequins
UAE Division 1
Dubai Sharks v Dubai Hurricanes II
Al Ain Amblers v Dubai Knights Eagles II
Dubai Tigers II v Abu Dhabi Saracens
Jebel Ali Dragons II v Abu Dhabi Harlequins II
Sharjah Wanderers v Dubai Exiles II
LAST SEASON
West Asia Premiership
Winners – Bahrain
Runners-up – Dubai Exiles
UAE Premiership
Winners – Abu Dhabi Harlequins
Runners-up – Jebel Ali Dragons
Dubai Rugby Sevens
Winners – Dubai Hurricanes
Runners-up – Abu Dhabi Harlequins
UAE Conference
Winners – Dubai Tigers
Runners-up – Al Ain Amblers
Spider-Man: No Way Home
Director: Jon Watts
Stars: Tom Holland, Zendaya, Jacob Batalon
Rating:*****
COMPANY PROFILE
Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
COMPANY PROFILE
Company: Mascotte Health
Started: 2023
Based: Miami, US
Founder: Bora Hamamcioglu
Sector: Online veterinary service provider
Investment stage: $1.2 million raised in seed funding
The years Ramadan fell in May
Cricket World Cup League 2
UAE results
Lost to Oman by eight runs
Beat Namibia by three wickets
Lost to Oman by 12 runs
Beat Namibia by 43 runs
UAE fixtures
Free admission. All fixtures broadcast live on icc.tv
Tuesday March 15, v PNG at Sharjah Cricket Stadium
Friday March 18, v Nepal at Dubai International Stadium
Saturday March 19, v PNG at Dubai International Stadium
Monday March 21, v Nepal at Dubai International Stadium
Top 10 most competitive economies
1. Singapore
2. Switzerland
3. Denmark
4. Ireland
5. Hong Kong
6. Sweden
7. UAE
8. Taiwan
9. Netherlands
10. Norway
More from Neighbourhood Watch:
The five pillars of Islam
WHAT IS THE LICENSING PROCESS FOR VARA?
Vara will cater to three categories of companies in Dubai (except the DIFC):
Category A: Minimum viable product (MVP) applicants that are currently in the process of securing an MVP licence: This is a three-stage process starting with [1] a provisional permit, graduating to [2] preparatory licence and concluding with [3] operational licence. Applicants that are already in the MVP process will be advised by Vara to either continue within the MVP framework or be transitioned to the full market product licensing process.
Category B: Existing legacy virtual asset service providers prior to February 7, 2023, which are required to come under Vara supervision. All operating service proviers in Dubai (excluding the DIFC) fall under Vara’s supervision.
Category C: New applicants seeking a Vara licence or existing applicants adding new activities. All applicants that do not fall under Category A or B can begin the application process through their current or prospective commercial licensor — the DET or Free Zone Authority — or directly through Vara in the instance that they have yet to determine the commercial operating zone in Dubai.
Day 3, Abu Dhabi Test: At a glance
Moment of the day Just three balls remained in an exhausting day for Sri Lanka’s bowlers when they were afforded some belated cheer. Nuwan Pradeep, unrewarded in 15 overs to that point, let slip a seemingly innocuous delivery down the legside. Babar Azam feathered it behind, and Niroshan Dickwella dived to make a fine catch.
Stat of the day - 2.56 Shan Masood and Sami Aslam are the 16th opening partnership Pakistan have had in Tests in the past five years. That turnover at the top of the order – a new pair every 2.56 Test matches on average – is by far the fastest rate among the leading Test sides. Masood and Aslam put on 114 in their first alliance in Abu Dhabi.
The verdict Even by the normal standards of Test cricket in the UAE, this has been slow going. Pakistan’s run-rate of 2.38 per over is the lowest they have managed in a Test match in this country. With just 14 wickets having fallen in three days so far, it is difficult to see 26 dropping to bring about a result over the next two.
EMIRATES'S REVISED A350 DEPLOYMENT SCHEDULE
Edinburgh: November 4 (unchanged)
Bahrain: November 15 (from September 15); second daily service from January 1
Kuwait: November 15 (from September 16)
Mumbai: January 1 (from October 27)
Ahmedabad: January 1 (from October 27)
Colombo: January 2 (from January 1)
Muscat: March 1 (from December 1)
Lyon: March 1 (from December 1)
Bologna: March 1 (from December 1)
Source: Emirates
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Director: Jon Favreau
Starring: Donald Glover, Seth Rogen, John Oliver
Rating: 2 out of 5 stars
Punchy appearance
Roars of support buoyed Mr Johnson in an extremely confident and combative appearance
Alan Wake Remastered
Developer: Remedy Entertainment
Publisher: Microsoft Game Studios
Consoles: PlayStation 4 & 5, Xbox: 360 & One & Series X/S and Nintendo Switch
Rating: 4/5
Company Profile
Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50