Saudi Aramco division prepares for $1bn IPO

Saudi Aramco Base Oil Co., the refinery arm of the Saudi state-owned Saudi Aramco, is planning an IPO that could raise over $1 billion, Bloomberg reports citing its own sources, Report informs.

Luberef company has selected Saudi-based HSBC Holdings Plc and local SNB Capital as advisors for the IPO, sources say.

According to them, during the IPO, a 30% stake in Luberef, owned by the Saudi oil company Jadwa Investment, will be sold. The latter acquired this stake in 2007 from Exxon Mobil Corp., which became an investor in Luberef back in 1978.

The Saudi Arabian stock market is in the top 10 for the best performance this year. More than 70 companies filed for IPOs last month, the local exchange said.

Among other divisions of Saudi Aramco, which previously placed shares on the market, are petrochemicals Saudi Basic Industries Corp. and Rabigh Refining & Petrochemical Co.

The IPO prospectus of Saudi Aramco itself, published in 2019, stated that Luberef annually produces 1.2 million tons of oil products.