Saudi Aramco refiner drops in debut after $1.3bn IPO

Saudi Aramco refiner drops in debut after $1.3bn IPO

Saudi Aramco Base Oil Co., a refining unit of the state-owned oil producer, slumped in its trading debut following an initial public offering that raised $1.32bn, bucking the trend for strong debuts in the Gulf region amid the gloomy outlook for the global economy. Luberef, as the refiner is known, dropped as much as 6.6 per cent in Riyadh to SAR92.5 ($24.61), valuing the company at SAR15.9bn. Saudi private equity firm Jadwa Investment sold 50 million shares — a 30 per cent stake — in the offering, for SAR99 per share, the top of the pricing range. Oil giant Saudi Aramco is holding onto its 70 per cent share. The Gulf has been one of the world’s most active IPO markets in 2022, raising more than $20bn this year. That would have been an annual record if it weren’t for 2019 when Aramco had its $29.4bn listing. However, while investor demand for new listings has held up, the after-market performance has been weaker as regional equity indexes have come off earlier highs, tracking a decline in oil. Luberef operates two production facilities on Saudi Arabia’s west coast, producing various base oils and byproducts including asphalt, marine heavy fuel oil and