Ahead of Aramco IPO, Nasdaq says dual listing key for large firms’ liquidity

Adena Friedman, chief executive of Nasdaq, one of several exchanges around the world competing for the international listing of Saudi oil giant Aramco, said Monday that large companies with dual listings in different time zones can generate more liquidity from investors.

Speaking in Dubai in a session entitled ‘How to Tame a Volatile Market’ at the annual World Government Summit, Friedman stressed the importance of companies being transparent and governments having stable fiscal policies so that investors know what they are investing in.

“If you can create that environment then you have created a great capital market. The stability comes from the fiscal and monetary policy of the government and predictability,” she said. “The best way to create (market) stability is to create predictability.”

Friedman declined to comment on specific negotiations with the state-owned oil giant, but touted Nasdaq’s more than 20-year history with Saudi Arabia’s Tadawul stock exchange.

In December, Nasdaq signed an agreement with Tadawul to upgrade the Saudi exchange’s infrastructure and technology.

Aramco’s anticipated $100 billion listing, is set to take place on the Tadawul and possibly another exchange, gearing to be the largest initial public offering ever.