Luberef gets CMA’s nod to float 50.04 mln shares on Tadawul

Logo of Saudi Aramco Base Oil Co. (Luberef)

Saudi Aramco Base Oil Co. (Luberef) obtained the Capital Market Authority’s (CMA) approval to float 50.045 million shares on the Saudi Exchange (Tadawul).

The company will publish the prospectus within sufficient time ahead of the IPO, the market regulator said in a statement.

The prospectus includes all relevant information that the investor needs to know before making an investment decision, including the company’s financial statements, activities and management.

The offering’s approval is valid for six months as of today, Nov. 24. It will be cancelled if the offering and listing of the shares are not completed within this period.

Founded in 1976 in Jeddah, Luberef is a joint venture (JV) between Mobil and Petromin. The latter’s 70% stake was transferred to Saudi Aramco in 1996, while Mobil sold its 30% stake to Jadwa Industrial Investment Co. in 2007, according to Argaam’s data.

The firm produces several Group I and Group II base oil products besides manufacturing many by-products such as asphalt, marine heavy fuel oil (MHFO), slack wax, bright stock extract, sulfur and white products such as ultra-low sulfur diesel (ULSD), naphtha and drilling fluid. It manufactures 1.3 million metric tons of base oils annually.

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