President Trump, flanked by White House senior advisor Jared Kushner and chief economic advisor Gary Cohn, delivers remarks to reporters after meeting with Saudi Arabia’s Deputy Crown Prince and Minister of Defense Mohammed bin Salman (L) at the Ritz Carlton Hotel in Riyadh.
President Donald Trump wants Saudi Arabia’s state-owned oil company to place its initial public offering (IPO) on the New York Stock Exchange (NYSE) to bring in massive listing fees, as well as score some political points, Axios reports.
President Donald Trump spoke with Saudi Arabia’s King Salman in a phone call Saturday. Before the call, Trump tweeted his hopes of Saudi Aramco’s IPO selling on the NYSE, Bloomberg reports.
Would very much appreciate Saudi Arabia doing their IPO of Aramco with the New York Stock Exchange. Important to the United States!
— Donald J. Trump (@realDonaldTrump) November 4, 2017
Saudi officials have valued the Aramco IPO at around $2 trillion, though other analysts project the actual worth much lower. If they are correct, however, the listing fees paid to the NYSE will be substantial, according to Axios.
“[Aramco’s IPO] will be just about the biggest ever,” Trump said after the call, according to Bloomberg. “[The U.S. wants] to have all the big listings.”
To encourage the deal, Trump is leveraging U.S. influence as a major Saudi Arabia military supplier and ally. The region’s increasing instability may work in Trump’s favor as the Saudis look for ways to strengthen their relationship with the U.S., Hedgeye Research Analyst Joe McMonigle told Axios.
“[Trump] probably breathed some new life into the potential U.S. listing,” McMonigle said. “He probably thought he had nothing to lose.”
Salman did not commit either way during the call. He is hesitating “because of litigation risk, and other risk, which is sad,” Trump said according to Bloomberg.