Saudi Aramco refiner drops in debut after $1.3bn IPO
Luberef, as the refiner is known, dropped as much as 6.6 per cent in Riyadh to SAR92.5 ($24.61), valuing the company at SAR15.9bn
Saudi Aramco Base Oil Co., a refining unit of the state-owned oil producer, slumped in its trading debut following an initial public offering that raised $1.32bn, bucking the trend for strong debuts in the Gulf region amid the gloomy outlook for the global economy.
Read: Saudi Aramco refiner Luberef’s IPO to raise up to $1.32bn
Luberef, as the refiner is known, dropped as much as 6.6 per cent in Riyadh to SAR92.5 ($24.61), valuing the company at SAR15.9bn.
Saudi private equity firm Jadwa Investment sold 50 million shares — a 30 per cent stake — in the offering, for SAR99 per share, the top of the pricing range. Oil giant Saudi Aramco is holding onto its 70 per cent share.
Read: Saudi Arabia’s Jadwa Investment divests stake in Luberef through IPO on Tadawul
The Gulf has been one of the world’s most active IPO markets in 2022, raising more than $20bn this year. That would have been an annual record if it weren’t for 2019 when Aramco had its $29.4bn listing. However, while investor demand for new listings has held up, the after-market performance has been weaker as regional equity indexes have come off earlier highs, tracking a decline in oil.
Luberef operates two production facilities on Saudi Arabia’s west coast, producing various base oils and byproducts including asphalt, marine heavy fuel oil and naphtha.
