Aramco unit hires HSBC, Citigroup for Riyadh share sale

Aramco unit hires HSBC, Citigroup for Riyadh share sale

Saudi Aramco Base Oil Co., a unit of the state-owned oil producer, has named Citigroup and HSBC Holdings for its initial public offering on the Saudi stock exchange. The company, also known as Luberef, is planning to sell 50 million shares, or a nearly 30 per cent stake, according to a statement. The price at which all subscribers in the offering will purchase the shares will be determined after the book-building period. The company hired SNB Capital as lead manager, financial adviser, book-runner, global coordinator and underwriter. It also named Citigroup Saudi Arabia, HSBC Saudi Arabia, and Morgan Stanley Saudi Arabia as financial advisers, book-runners, global coordinators and underwriters. Saudi Arabia’s Capital Market Authority approved Luberef’s IPO plan last week. The refinery business, with operations in Saudi industrial cities Jeddah and Yanbu, is 70 per cent owned by Saudi Aramco, while the rest is held by local private equity firm Jadwa Investment. The offering consists of Jadwa’s sale of its shares in Luberef, while Saudi Aramco is keeping it’s stake. The offering could raise about $1bn, reported in June. The energy-rich Gulf has been one of the world’s IPO hotspots this year, accounting for almost half the proceeds from new