Luberef IPO price range set at SAR 91-99 per share

Logo of Saudi Aramco Base Oil Co. (Luberef)

SNB Capital, the lead manager, financial advisor, book-runner, global coordinator and underwriter, as well as 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 potential initial public offering (IPO) of Saudi Aramco Base Oil Co. (Luberef) announced that the price range was set between SAR 91 and 99 per share.  

The book-building process for participating parties commences today, Dec. 4 and runs until Dec. 9. After determining the final price, the retail subscription will start. The final offering price will be announced on Dec. 11, after the end of the book-building period. It will last five days, from Dec. 14-18.

The offering price will be set after the completion of the book-building, to be followed by the retail subscription.

The participation in the book-building is confined to the participating parties, in accordance with the instructions of the book-building and allocation issued by the Capital Market Authority (CMA).

Luberef intends to proceed with the IPO and listing of its ordinary shares on the main market of the Saudi Exchange (Tadawul), according to data available with Argaam.

The company obtained on Nov. 24 the Capital Market Authority’s (CMA) approval on the listing.

The planned-to-be-offered stake represents 29.66% of the company’s share capital reaching 168.75 million shares (SAR 1.687 billion).

The offered shares will be for two categories:

Participating parties: Those who are qualified to participate in the book-building, including investment funds. Foreign companies and institutions, investors from GCC companies, and other foreign investors by virtue of swap agreements, to which all offered shares (100%) were allocated. In the event that retail investors fully subscribe to their allocated shares, the financial advisor will have the right to reduce the number of their allocated shares to 75% of the total offered shares, at 37.53 million minimum.

Retail investors: Saudi nationals, residing in the Kingdom, and GCC citizens, for whom 25%, or 12.51 million shares were allocated.

Established in 1976, the company currently has two production facilities, one in Jeddah and the other in Yanbu. The company's total production capacity currently reaches 1.3 million metric tons of base oils of the first and second categories.

Luberef is the sole producer of unrefined base oils in the Kingdom and one of the largest producers of base oils in the world.

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