Saudi Aramco’s refining unit, Luberef has received approval from the Saudi market regulator to proceed with an Initial Public Offering (IPO) of 29.66% of its share capital to the public.
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Saudi Aramco Base Oil Company (Luberef) is pleased to announce its intention to offer 29.6562963% of its share capital to the public through an initial public offering (IPO) and listing its shares on the Main Market of the Saudi Exchange, creating opportunities for investors to participate in one of Saudi Arabia’s most prominent sectors.
All the Offering Shares will be offered to individual and institutional investors (including institutional investors outside the United States), with a claw-back by the retail investors of up to 25%, as determined by the Joint Financial Advisors.
50,045,000 ordinary shares of Luberef will be listed on the Saudi Exchange’s Main Market, representing 29.6562963% of Luberef’s issued share capital of 168,750,000 shares, currently held and being offered by Jadwa Industrial Investment Company (Jadwa).
Jadwa Investment is the premier investment management and advisory firm in Saudi Arabia and the wider region. Headquartered in Riyadh with three regional offices, the firm has over SAR 70 billion in client assets under management and advisement. Its clients include government entities, local and international institutional investors, leading family offices, and high net-worth individuals.
Luberef has hired major international banks to manage its imminent initial public offering on the Saudi stock market that could raise around $1 billion, Bloomberg reports.
Banks, including Citigroup and HSBC Holdings Plc, will lead the share sale, which Luberef announced in a statement this weekend.
SNB Capital, HSBC, Citi, and Morgan Stanley are listed in Luberef’s announcement as joint financial advisors, bookrunners, global coordinators, and underwriters of the IPO process.
Luberef generated revenues of the equivalent of $2.359 billion in 2021, the company says on its website.
“Luberef’s IPO supports its growth ambitions, will strengthen its already competitive business and unlock new opportunities for its stakeholders. Since its establishment, Luberef has built a robust reputation for delivering high-quality base oil products in the Kingdom of Saudi Arabia and beyond, while creating value for all its stakeholders,” President and CEO Tareq Abdulaziz Alnuaim said in a statement.
The IPO Transaction milestones as listed by the company are;
- 27 Nov. 2022: Intention to Float
- 4-9 Dec. 2022: Price range announcement and institutional book building
- 11 Dec. 2022: Final price announcement and final prospectus
- 14-15 Dec. 2022: Retail Subscription period
- 22 Dec. 2022: Announcement of the final allocation of the Offer Shares
- 28 Dec. 2022: Refund of excess subscription amounts (if any)
- TBC: Start of Trading
In December 2019, State-owned Saudi Aramco raised a record $25.6 billion in its initial public offering in Riyadh.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur