Saudi Aramco Base Oil gets approval for Riyadh share offering Saudi Aramco Base Oil gets approval for Riyadh share offering
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Saudi Aramco Base Oil gets approval for Riyadh share offering

Saudi Aramco Base Oil gets approval for Riyadh share offering

Saudi Aramco is aiming to sell 50 million shares – a 29.7 per cent stake – in the company

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Saudi Aramco announces record Q2 and H1 2022 results

Saudi Aramco Base Oil Co., a unit of the state-owned oil producer known as Luberef, received regulatory approval for an initial public offering in Riyadh, as the world’s biggest crude producer looks to list some of its subsidiaries.

Saudi Aramco is aiming to sell 50 million shares – a 29.7 per cent stake – in the company that makes base oils used in lubricants for motor vehicles, ships and industrial machinery, the Capital Market Authority said Thursday.

The refinery business, with operations in Saudi industrial cities Jubail and Yanbu, is 70 per cent owned by Saudi Aramco with the rest held by local private equity firm Jadwa Investment.

Citigroup, HSBC Holdings and SNB Capital have been hired to advise on the offering that could raise about $1bn, Bloomberg reported in June.

Aramco is separately considering selling a stake in its oil trading business, people familiar told Bloomberg. It’s also sold off stakes in units that lease its oil and gas pipelines to private equity investors.

Saudi Arabia has been one of the world’s IPO hotspots this year, with 27 deals already completed according to according to data compiled by Bloomberg, even as share sales dry up in other markets.

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