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Aramco May Shun Direct IPO Sales to U.S. Funds on Legal Risk

Aramco’s Ras Tanura oil refinery.

Aramco’s Ras Tanura oil refinery.

Photographer: Simon Dawson/Bloomberg
Updated on

Saudi Aramco is considering a structure for its initial public offering that would prevent it from marketing the deal directly to fund managers in the U.S., people with knowledge of the matter said.

The state-owned oil giant wants to avoid litigation risks that could result from selling the deal to U.S.-based institutions, according to the people, who asked not to be identified because the information is private. Aramco is consulting with its bankers on the pros and cons of different deal structures, and it hasn’t made any final decision, the people said.