Saudi Aramco Base Oil Company (Luberef) will raise around 4.95 billion riyals ($1.32 billion) via an initial public offering (IPO), with the final price set at 99 riyals per share.
The IPO on the Saudi bourse Tadawul will be 50.045 million shares, representing around 30 percent of Luberef’s capital currently owned by private equity firm Jadwa Investment.
The final offer price for the IPO implies a market capitalization of 16.7 billion riyals at the listing, according to information available on Luberef’s website.
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Saudi Arabia’s Capital Market Authority on 24 November this year approved the IPO of the base oil subsidiary of energy giant Saudi Aramco. The actual date of listing has yet to be confirmed.
Saudi Aramco will not sell any of its shares in the offering and will continue to own 70 percent of the company’s share capital following the IPO.
The subscription period for individual investors is set to open for five days, from December 14 until December 18. A maximum of 12.5 million shares, or a quarter of the total share offering, will be allocated to individual investors.
Luberef operates two production facilities on Saudi Arabia’s west coast at Jeddah and Yanbu, producing around 1.3m tonnes/year of Group I and Group II base oils, according to the ICIS Supply and Demand database.
Saudi Aramco owns 70 percent of Luberef and Jadwa owns the remaining 30 percent, which it acquired in 2007 from Exxon Mobil.
Middle East IPOs have raised more than $19 billion this year, the highest share for the Gulf region after 2019 when Saudi Aramco went public in a $29 billion offering, the world’s largest.
