Saudi Aramco Base Oil Co., a refining unit of the state-owned oil producer, slumped in its trading debut after an IPO that raised $1.32 billion, bucking the trend for strong debuts in the Gulf amid the gloomy outlook for the world economy .
Read: Saudi Arabian Aramco refiner Luberef IPO set to raise up to $1.32 billion
Luberef, as the refinery is known, fell as much as 6.6 percent in Riyadh to SAR92.5 ($24.61), valuing the company at SAR15.9 billion.
Saudi private equity firm Jadwa Investment sold 50 million shares – a 30 percent stake – in the bid for SAR99 per share, the top of the price range. Oil giant Saudi Aramco is sticking with its 70 percent stake.
Read: Saudi Arabia’s Jadwa Investment sells stake in Luberef through IPO to Tadawul
The Gulf was one of the most active IPO markets in the world in 2022, raising more than $20 billion that year. That would have been an annual record if it hadn’t been for 2019, when Aramco had its $29.4 billion listing. However, while investor demand for new listings continued, after-market performance was weaker as regional equity indices hit previous highs and tracked a decline in oil prices.
Luberef operates two manufacturing facilities on the west coast of Saudi Arabia that produce a variety of base oils and by-products, including asphalt, heavy marine fuel oil and naphtha.
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