KSA Business: Aramco unit Luberef set to raise $1.3bn from IPO – Gulf Digital News

KSA Business: Aramco unit Luberef set to raise $1.3bn from IPO – Gulf Digital News

Saudi oil giant Aramco has announced that its base oil subsidiary, Luberef, has completed the book-building process for participating entities and is set to raise over SR4.95 billion ($1.32 billion) from its

initial public offering (IPO) after choosing the higher range of its share price.

A key refining unit of Aramco, Luberef has sold more than 50 million shares (equal to 29.7% of the company's issued share capital,) with the IPO drawing strong demand from investors in the kingdom and internationally.

The final offer price for the IPO has been set at SR99 per share implying a market capitalisation of SR16.706 billion ($4.455 billion) at listing.

The institutional order book was 29.5 times oversubscribed with the book-building process generating an order book of around SR146.4 billion ($39 billion).

Luberef had signed up SNB Capital Company, HSBC Saudi Arabia, Citigroup Saudi Arabia and Morgan Stanley Saudi Arabia, as joint financial advisors, for the book-building process.

President and CEO Tareq Abdulaziz Alnuaim said: "We are delighted that Luberef’s offering has been met with substantial interest from both local and international institutional investors. It is a testament to the investors’ confidence in our company, our growth strategy and the prospects for our industry."