Saudi refiner Luberef prices $1.3 bln IPO at top end

Saudi refiner Luberef prices $1.3 bln IPO at top end

Saudi Aramco Base Oil Co., a refining unit of the state-owned oil producer, priced its Riyadh initial public offering at the top of a marketed range to raise 4.95 billion riyals ($1.32 billion) for the private equity firm selling its stake.

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Luberef, as the refiner is known, set the final price at 99 riyals a share, the top of a range of 91 to 99 riyals, according to the company’s prospectus.

The IPO, which is likely to be the last large Gulf listing of the year, shows that demand for share sales in the region hasn’t waned despite some muted recent trading debuts and the offering taking place at a time of year when investors typically shy away from taking on more risk.

Saudi private equity firm Jadwa Investment sold 50 million shares — a 30 percent stake — in the offering, while Saudi Aramco is holding onto its 70 percent holding. The institutional order book was 29.5 times oversubscribed, according to a statement from the company.

The IPO will take the proceeds of Gulf listings this year to over $20 billion, an amount that would be an annual record if