Saudi Aramco's Luberef expects $1.32 bln IPO

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Saudi Aramco's Luberef expects $1.32 bln IPO

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 almost 30% of the company's issued share capital, or 50.045 million shares, between 91 and 99 riyals each, the company said.

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

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

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

From December 14 to December 18 there will be a final share price that will be announced next Sunday, with subscriptions for individual investors running from December 14 to December 18. A date has not been set for shares to begin trading on Riyadh's Tadawul exchange.

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

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

Aramco is planning to IPO its energy-trading business after raising billions from deals related to its pipeline infrastructure.

The kingdom's privatisation programme is a cornerstone of its Vision 2030 economic agenda to get rid of oil, build new industries and create jobs.