Saudi Aramco Base Oil Co., the refining unit of the state-owned Saudi oil company, has begun planning for its initial public offering (IPO) on the Saudi stock exchange. The company has announced that it has hired banks including Citigroup and HSBC Holdings Plc to oversee the sale.
Also known as Luberef, the company is planning to sell 50 million shares, which make up approximately 30% of the company.
SNB Capital has been named as the company’s lead financial advisor, global coordinator, lead manager, and underwriter, while Citigroup Saudi Arabia, HSBC Saudi Arabia, and Morgan Stanley Saudi Arabia will also operate as financial advisors.
Bidding for participating parties as well as the book-building process commences on December 4 for six days, while the subscription period for individual investors will open on December 14 for two days.
Luberef operates two production facilities in Yanbu and Jeddah, both located on Saudi Arabia’s west coast. The company produces various base oils and byproducts such as asphalt, marine heavy fuel oil, and naphtha.