Saudi Aramco’s refining unit and one of the world’s largest base oil producers, Luberef is set to raise more than $1.32 billion from its initial public offering after choosing the higher range (SAR 99) of its offer share price. The announcement come amid a bumper year for company listings in the Middle East, thanks to high oil prices.
Luberef sold more than 50 million shares, or about 29.7% of the company’s issued share capital, with the IPO drawing strong demand from local and international investors.
SNB Capital Company, HSBC Saudi Arabia, Citigroup Saudi Arabia and Morgan Stanley Saudi Arabia were joint financial advisors for the offering.
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 quarter of the total share offering, will be allocated to individual investors.
Luberef is selling existing shares owned by private equity company Jadwa Investment. It will list on the main market of Saudi Arabia’s Tadawul stock exchange.
Saudi Aramco owns 70% of Luberef and Jadwa owns the remaining 30%, which it acquired in 2007 from US oil major Exxon Mobil.
Aramco will not sell any of its shares in the offering and will continue to own 70% of Luberef’s share capital after the offering. No date has been set yet for shares to begin trading on the Tadawul exchange.