Luberef, Saudi Aramco Base Oil Company, is offering almost 30% of its share capital to the public through an initial public offering (IPO) and listing its shares on the Saudi Exchange.
Luberef is set to raise more than 4.95 billion riyals, which accounts for $1.32 billion, from its initial public offering. The refiner set the final price of its share at 99 riyals, which is the highest in the 91 to 99 offering price range.
Jadwa Investment, a Saudi private equity firm, sold its %30 stake, which accounts for 50 million shares in the offering. The institutional order book was 29.5 times oversubscribed, according to the company’s statement.
“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,” Tareq Abdulaziz Alnuaim, President and CEO of Luberef, said.
The retail subscription period will be for five days starting on Wednesday 14 December and ending on Sunday 18 December.
SNB Capital Company, HSBC Saudi Arabia, Citigroup Saudi Arabia, and Morgan Stanley Saudi Arabia, are the joint financial advisors.
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