Saudi Aramco Base Oil Company, Luberef, one of the largest base oils producers in the world and the leading base oils producer in the Kingdom of Saudi Arabia (KSA), has completed the book-building process for participating entities and the final offer price for the company’s initial public offering (IPO).
The final offer price for the IPO has been set at $ 26.3 per share, implying a market capitalization of $4.5 billion at listing. The institutional order book was 29.5 times oversubscribed with the book-building process generating an order book of around $39.0 billion.
The retail subscription period will be for five days, commencing on Wednesday, 14 December 2022 and ending at 5 pm on Sunday, 18 December 202. SNB Capital Company, HSBC Saudi Arabia, Citigroup Saudi Arabia and Morgan Stanley Saudi Arabia, were the joint financial advisors.
“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.”
On 24 November 2022, the Capital Market Authority (CMA) approved the company’s application for an initial public offering of 50,045,00 shares, representing 29.6562963 percent of the company’s capital, by way of selling existing shares by Jadwa Industrial Investment Company.
Mr. Ibrahim Qassim Al Buainain, Chairman of Luberef said that “We believe Luberef is an integral part of Saudi Arabia’s supply chain and a driving force in the Kingdom’s industrialization ambitions. Luberef’s listing adds an important strategic dimension to the company’s growth strategy while facilitating our vision to be the leading supplier of premium base oils and specialty products.”