Luberef retail IPO 230% covered with SAR 2.9 bln orders, 10 shares allotted per subscriber

Logo of Saudi Aramco Base Oil Co.

Saudi Aramco Base Oil Co. (Luberef) completed its retail offering, with a coverage ratio of 230.1%, according to a statement by SNB Capital, lead manager, financial advisor, book-runner, global coordinator and underwriter, Citigroup Saudi Arabia, HSBC Saudi Arabia, and Morgan Stanley Saudi Arabia in their capacity as financial advisors, book-runners, global coordinators and underwriters on the IPO.

The number of retail subscribers reached 524,800, while total orders were valued at about SAR 2.85 billion.

A minimum of 10 shares were allocated per retail subscriber. The remaining shares will be allocated on a pro-rata basis, based on the demand size of every subscriber to total shares.

Fractional shares were collated and allocated one share per application starting from the highest order in a descending order.

Surplus refunds to retail investors will be processed no later than Dec. 28, 2022, the statement added.

The company offered 50.045 million shares, representing 29.66% of its capital, of which 75% was allocated to participating parties and 25% to retail investors, Argaam earlier reported. 

The subscription period for the retail tranche ran through Dec. 14-18. Retail investors fully subscribed to 12.511 million shares at SAR 99 each. 

Luberef’s institutional offering, which was completed last week, was 29.5x covered.

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