Saudi Aramco’s Luberef Set for IPO

Saudi Aramco’s Luberef Set for IPO

Saudi Al-Ahli Tadawul announced a potential initial public offering (IPO) for one of Saudi Aramco's subsidiaries.

Ahli Capital announced its capacity as the underwriting manager, financial advisor, institutional underwriting book manager, international coordinator, and underwriter of Citigroup Saudi Arabia, HSBC Saudi Arabia, and Morgan Stanley Saudi Arabia as the financial advisers, global coordinators, and underwriters of public offerings.

The company said that Aramco's base oil subsidiary, Luberef, has won approval from the Kingdom's stock market regulator, Capital Market Authority (CMA), to launch its IPO and list its shares on the primary market of the Saudi Stock Exchange (Tadawul).

Luberef is one of the world's largest producers of base oils and produces one of every eight barrels of base oils globally, with a total capacity to produce 1.3 metric tons per year of base oils.

Luberef will sell 50 million shares, or 29.7 percent of the company's issued share capital, through the IPO on the Tadawul stock exchange, the company said in a statement on Sunday.

The final pricing of the offer shares will be determined at the end of the book-building period, it stated.

The company obtained Tadawul's approval for its request to list its shares in the main market on November 24 and also received