Saudi oil giant Aramco’s base oil subsidiary Luberef expects to raise to 4.95 billion riyals ($1.32 billion) from its initial public offering, it said, if its prices are at the top of a range announced on Sunday.
The world’s biggest crude producer seeks to list some of its subsidiaries.
BOOKRUNNER SAYS OFFERING SIZE OF $1.21 BILLION–$1.32 BILLION; PRICE RANGE: SAR 91-99 PER SHARE.
Luberef will sell more than 50 million shares or about 29.7 percent of the company’s issued share capital.
After the determination of the final price, the individual investor’s subscription will start.
The offering period for Individual Investors will be for five days, commencing on Wednesday 14 December 2022G and ending at 5 pm on Sunday 18 December 2022G.
State-led IPO programs in Saudi Arabia, Abu Dhabi and Dubai have helped equity capital markets in the oil-rich Gulf.
The final offer price will be determined through a book-building process and is expected to be announced on December 11, it said.
A minimum of 75% of the Luberef shares being sold will be offered to institutional investors, with book building getting underway on Sunday and running until Friday.
Aramco owns 70% of Luberef and Saudi investment bank Jadwa Investment the remaining 30%.
Luberef is selling existing shares owned by private equity company Jadwa Investment. It will list the main market of Saudi Arabia’s Tadawul stock exchange.
Last month, Americana, the largest quick-service restaurant operator in the Mena region, raised $1.8 billion from its IPO.