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Luberef’s market cap at $4.4bn after final offer price

People, Person, Man Luberef/Twitter
Luberef raised SAR 4.95 billion earlier this month through an IPO

Oil giant Saudi Aramco’s base oil subsidiary Luberef has set the final offer price for its upcoming initial public offering (IPO) at SAR 99 ($26.33) a share, at the top end of the price range amid strong demand.

The pricing implies a market capitalisation of SAR 16.7 billion ($4.44 billion), the company said in a statement. Saudi investment bank Jadwa, is the selling shareholder, offering its 30 percent share in the company to investors. Aramco owns the majority 70 percent stake in the company.

Luberef received $30 billion in orders from institutional investors during the book building process, the company statement said, signalling continued strong demand for Gulf IPOs this year.

A date has not yet been set for shares to begin trading on Riyadh’s Tadawul exchange. The retail subscription period is scheduled to run from December 14-18.

SNB Capital Company, HSBC Saudi Arabia, Citigroup Saudi Arabia and Morgan Stanley Saudi Arabia are joint financial advisers on the IPO, with SNB Capital also acting as lead manager.