Saudi Aramco’s Luberef expects to raise up to $1.32 billion from IPO

1 min


166
105 shares, 166 points

By Yousef Saba

DUBAI (Reuters) – Saudi oil giant Aramco’s base oil subsidiary Luberef expects to raise up to 4.95 billion riyals ($1.32 billion) from its initial public offering, it said, if it prices at the top of a range announced on Sunday.

Luberef will sell nearly 30% of the company’s issued share capital, or 50.045 million shares, at between 91 and 99 riyals each, the company said in a statement.

State-led IPO programmes in Saudi Arabia, Abu Dhabi and Dubai have helped equity capital markets in the oil-rich Gulf, in sharp contrast to the United States and Europe, where global banks have been trimming headcount in a dealmaking drought.

Gulf issuers have raised about $16 billion through such listings this year, accounting for about half of total IPO proceeds from Europe, the Middle East and Africa, Refinitiv data shows.

A minimum of 75% of the Luberef shares being sold will be offered to institutional investors, with bookbuilding getting underway on Sunday and running until Friday.

The final share price will be announced next Sunday, with subscriptions for individual investors running from Dec. 14 to Dec. 18. A date has not yet been set for shares to begin trading on Riyadh’s Tadawul exchange.

Aramco owns 70% of Luberef and Saudi investment bank Jadwa Investment the remaining 30%.

Saudi Aramco’s record listing in late 2019, later boosted to total $29.4 billion in proceeds, was the world’s largest IPO.

Aramco, which has raised billions from deals linked to its pipeline infrastructure, is also planning an IPO of its energy-trading business.

The kingdom’s privatisation programme is a cornerstone of its Vision 2030 economic agenda to wean the economy off oil, build new industries and create jobs.

($1 = 3.7585 riyals)

(Reporting by Yousef Saba; Editing by Kirsten Donovan)

Source: KFGO


Like it? Share with your friends!

166
105 shares, 166 points

What's Your Reaction?

Cute Cute
26
Cute
Fun Fun
18
Fun
Hate Hate
13
Hate
Confused Confused
2
Confused
Fail Fail
21
Fail
Geeky Geeky
16
Geeky
Love Love
8
Love
OMG OMG
2
OMG
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube, Vimeo or Vine Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format