Saudi Aramco Base Oil Co or Luberef, one of the largest base oils producers in the world, has has recorded excellent participation by 524,848 investors, indicating an oversubscription of 2.3 times, with a total demand of SAR 2.850 billion ($760 billion).
The final offer price for the IPO has been set at SAR 99 per share, implying a market capitalisation of $ 4.455 billion at listing.
Individual investors will receive a minimum of 10 shares each, while the remaining shares will be allocated on a pro-rata basis for the remaining demand with an average allocation factor of 30.8537%, Luberef said.
The retail subscription process, comprising a maximum of 12,511,250 representing 25% of the total offering shares, commenced on Dec.14, 2022 and ended on December 18, 2022.
Based on the results of the retail subscription process, the shares allocated to participating parties will be reduced to 37,533,750 offer shares, representing 75% of the total offering.
The IPO’s joint financial advisors were SNB Capital Company, HSBC Saudi Arabia, Citigroup Saudi Arabia and Morgan Stanley Saudi Arabia.
2022 has been a bumper year for company listings in the Middle East, thanks to high oil prices.
