Luberef to start trading its shares on Saudi Stock Exchange

Saudi Aramco Base Oil Company – Luberef, one of the largest base oil producers in the world, will debut on the Saudi Stock Exchange (Tadawul) on December 28, following a successful initial public offering (IPO). The company will trade its shares on the main market with the symbol 2223, Tadawul said.

Luberef, together with its joint financial advisors SNB Capital Company, HSBC Saudi Arabia, Citigroup Saudi Arabia and Morgan Stanley Saudi Arabia, announced the successful completion of the offering period for retail investors, which ended on December 18, on December 21.

The retail subscription process consisted of a maximum of 12,511,250 representing 25% of the total offering shares.It witnessed participation by 524,848 investors, indicating a coverage of 2.3 times, with a total demand of SAR2.850 billion (USD 0.76 billion). Individual investors will receive a minimum of 10 shares each, while the remaining shares will be allocated on a pro-rata basis for the remaining demand with an average allocation factor of 30.8537%.

The final offer price was set at SAR99 (USD26.43) per share, implying a market capitalization of SAR16.706 billion (USD 4.455 billion) at listing. This was after the successful completion of the bookbuilding process, which ended with an institutional order book that was oversubscribed by 29.5 times of the total offering and an order book of about SAR146.4 billion (USD39.0 billion).

Based on the results of the retail subscription process, the shares allocated to participating parties will be reduced to 37,533,750 offer shares, representing 75% of the total offering.

Luberef will have a daily price fluctuation limit of 30% during the first three days of listing. The limit will be lowered to 10% from the fourth day onwards.