Citigroup among banks leading Aramco refinery unit’s IPO

Citigroup among banks leading Aramco refinery unit’s IPO

Citigroup is among the banks leading the planned initial public offering of Saudi Aramco Base Oil, a unit of the state-controlled oil producer, according to people familiar with the matter.

Luberef, as the refining company is also known, plans to launch its IPO in the second half of the year, the people said, asking not to be identified discussing private information. The local unit of HSBC Holdings and SNB Capital are also advising on the offering, which could raise about $1 billion.

Luberef would join several Aramco subsidiaries already listed on Saudi Arabia’s stock exchange, including chemicals maker Saudi Basic Industries and Rabigh Refining & Petrochemical.