Charles Li, the CEO of Hong Kong Exchanges and Clearing said a secondary listing by Saudi Aramco in Hong Kong would be, “a match made in heaven.”
The expected listing of the Saudi oil and gas company is predicted to be the world’s largest initial public offering ever. Last month, Saudi Arabia’s energy minister said the company was looking at listing concurrently on more than one exchange.
Speaking exclusively to CNBC after the stock exchange operator reported 2016 earnings, Li said he believed the HKEx would bring, “unique value” to Saudi Aramco, and a very competitive proposition because of the rule of law in Hong Kong and access to investors in mainland China — via the Shenzhen-Hong Kong stock connect and the Shanghai-Hong Kong stock connect.
“Through connect we potentially can bring Chinese demand onshore onto a very large IPO,” Li said referring to the two stock connects. He added that would bring together, “a most important energy company, and investors from the largest energy consumption country that is indeed a match made in heaven.”
Hong Kong Exchanges and Clearing reported net profit fell 27 percent to HK$5.8 billion ($747.6 million) in 2016 from a year ago, as trading volumes declined from 2015. That was below analysts’ average estimate of HK$6 billion, according to Thomson Reuters data.