KSA Business: Aramco unit Luberef set for key IPO; wins nod for Saudi listing – Gulf Digital News

KSA Business: Aramco unit Luberef set for key IPO; wins nod for Saudi listing – Gulf Digital News

Saudi oil giant Aramco has announced that its base oil subsidiary, Luberef, has won approval from the kingdom’s stock market regulator, Capital Market Authority (CMA), to launch its an initial public offering (IPO) and list its shares on the main market of the Saudi Stock Exchange.

A key Aramco unit, Luberef (formerly Saudi Aramco Lubricating Oil Refining Company) makes base oils used in lubricants for motor vehicles, ships and industrial machinery.

Following the CMA nod, Luberef will be offering investors 50.045 million shares which is equivalent to 29.656% of its share capital by way of a sale of existing shares by Jadwa Industrial Investment Company, said a statement from Aramco.

The shares will be offered for subscription to individual and institutional investors, including institutional investors outside the US in offshore transactions in accordance with Regulation S under the US Securities Act of 1933, as amended (the Securities Act). A maximum of 12.5 million ordinary shares, representing 25% of the total offer shares, will be allocated to individual investors.

The Saudi oil giant said made it clear that it will not sell any of its shares in the offering and will continue to own 70% of Luberef’s share capital following the IPO.

The final pricing of