Luberef shares to start trading on Tadawul today

Logo of Saudi Aramco Base Oil Co.

Saudi Aramco Base Oil Co. (Luberef) will begin trading on the Saudi Exchange (Tadawul), today, Dec. 28, under the materials sector, with the symbol 2223 and ISIN Code SA15M1HH2NH5, at SAR 99 per share.

In a statement to Tadawul, the company stated that shares will trade with +/- 30% daily price fluctuation limits and +/- 10% static price fluctuation limits. 

From the fourth trading day onwards, the daily price fluctuation limits will revert to +/- 10% and the static price fluctuation limits will no longer apply. 

This will be the 17th listing on the main market in 2022, following Elm Co., East Pipes Integrated Company for Industry, Scientific & Medical Equipment House Co., Al-Dawaa Medical Services Co., Nahdi Medical Company, Al Masane Al Kobra Mining Co. (AMAK), Saudi Home Loans Co., Retal Urban Development Co., Alamar Foods, Naqi Water, Arabian Drilling, Perfect Presentation for Commercial Services Co., Americana Restaurants International PLC Co., Riyadh Cables Group, and AlSaif Stores for Development and Investment (AlSaif Gallery).

Last year witnessed nine listings, including Alkhorayef Water and Power Technologies Co. (March 1), Theeb Rent a Car Co. (March 29), Tanmiah Food Co. (Aug. 4), solutions (Sept. 30), International Company for Power and Water Projects (ACWA Power) (Oct. 11), Arabian Contracting Services Co. (Al Arabia) (Nov. 15), Nayifat Finance Co. (Nov. 22), Saudi Tadawul Group (Dec. 8) and Almunajem Foods Co. (Dec. 20).

The company's listing will bring the total number of Tadawul-listed companies to 206, excluding 17 REITs.

The company offered 50.045 million shares, representing 29.66% of its capital, of which 75% was allocated to participating parties and 25% to retail investors.

Retail investors fully subscribed to 12.511 million shares at SAR 99 each. Luberef’s institutional offering, which was completed last week, was 29.5x covered.

Retail offering was 230.1% covered. The number of retail subscribers reached 524,800, while total orders were valued at about SAR 2.85 billion.

A minimum of 10 shares were allocated per retail subscriber. The remaining shares were allocated on a pro-rata basis, based on the demand size of every subscriber to total shares.

Company Information:

Established as a limited liability company in Jeddah in 1976, Luberef is a Saudi joint stock company. It then transformed into a closed joint stock company in 2022.

The company's current capital amounts to SAR 1.687 billion, divided into 168.75 million shares.

The core activities include manufacturing of refined petroleum products, synthetic plastics and rubbers in their primary forms, as well as other chemical products not classified elsewhere. The company is also involved in the wholesale of solid, liquid and gaseous fuels and related products.

Luberef is the sole producer of unrefined base oils in the Kingdom and one of the largest producers of base oils in the world.

Its products are sold in the Kingdom and around the world, including the Middle East, North Africa, the Americas and Europe.

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. 

The company markets its main products under Saudi Aramco-licensed brands, Group I base oil products under the aramcoDURA brand, Group II base oil products under the aramcoPRIMA brand, and Group III base oil products under the aramcoULTRA brand.

Luberef said in its prospectus that it is currently carrying out a number of projects and studying others, to improve its performance and expand its business and activities, including the second expansion project in Yanbu, the business transformation initiative, and the oil industries complex in Yanbu.

The company has a wholly owned subsidiary, Saudi Aramco Base Oils Company - Luberef FZE, which was established in 2014 as a free zone corporation with limited liability in the UAE.

Luberef FZE's activities under its trade license are the import, export and trading of petroleum products, chemicals, diesel, lubricants and base oils. Luberef FZE does not currently carry out any material activities and does not own any material assets, but its main role is to facilitate the import and storage activities carried out by the company in the Hamriyah Free Zone.

* Luberef will purchase treasury shares from Jadwa Industrial Investment Co., in parallel with the offering process.

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