The Tadawul All Share Index, the Arab world's largest stock market, has bucked the global slowdown of initial public offerings this year. AFP
The Tadawul All Share Index, the Arab world's largest stock market, has bucked the global slowdown of initial public offerings this year. AFP
The Tadawul All Share Index, the Arab world's largest stock market, has bucked the global slowdown of initial public offerings this year. AFP
The Tadawul All Share Index, the Arab world's largest stock market, has bucked the global slowdown of initial public offerings this year. AFP

Aramco refining unit Luberef begins trading on Tadawul after $1.32bn IPO


Massoud A Derhally
  • English
  • Arabic

Shares of Saudi Aramco Base Oil Company, better known as Luberef, began trading on the Arab world's largest stock market after it raised $1.32 billion in its initial public offering.

The company's shares, which started trading under the ticker symbol “LUBEREF” on Saudi Arabia's Tadawul market, ended trading at 95 riyals ($25.33) on Wednesday, 4 per cent below the listing price.

The company's final offer price was set at the higher end of 99 riyals a share, implying a market capitalisation of about 16.71 billion riyals at listing.

The refining unit of oil company Saudi Aramco sold more than 50 million shares, or about 29.7 per cent of the company's issued share capital, with the IPO drawing strong demand from investors in the kingdom and internationally.

The institutional portion of the offering was 29.5 times oversubscribed, generating an institutional order book of about 146.4 billion riyals, the company said on Sunday.

Individual investors, who accounted for a quarter of the total offering, drew about $760 million in bids.

Luberef sold existing shares owned by private equity company Jadwa Investment, which held 30 per cent of the Aramco unit after acquiring the stake from Exxon Mobil in 2007.

Aramco owns the remaining 70 per cent and did not sell any of its shares in the offering.

  • In November 2022, FTSE Russell updated the investability weightings of Saudi Tadawul Group, the holding company that owns and operates the kingdom's stock exchange, on its indices that include the FTSE All-World Index, the FTSE Global Mid Cap Index and the FTSE Emerging Index. AFP
    In November 2022, FTSE Russell updated the investability weightings of Saudi Tadawul Group, the holding company that owns and operates the kingdom's stock exchange, on its indices that include the FTSE All-World Index, the FTSE Global Mid Cap Index and the FTSE Emerging Index. AFP
  • A view of the exchange board at the Stock Exchange Market (Tadawul) bourse in Riyadh displaying Aramco shares. AFP
    A view of the exchange board at the Stock Exchange Market (Tadawul) bourse in Riyadh displaying Aramco shares. AFP
  • An investor looks at a screen of asset prices at the Tadawul exchange in Saudi Arabia. AFP
    An investor looks at a screen of asset prices at the Tadawul exchange in Saudi Arabia. AFP
  • A man walks past the Tadawul sign in Saudi Arabia. Reuters
    A man walks past the Tadawul sign in Saudi Arabia. Reuters
  • Middle East IPOs have raised about $21 billion in 2022. AFP
    Middle East IPOs have raised about $21 billion in 2022. AFP
  • Investors are seen at the Tadawul stock exchange in Saudi Arabia. AP
    Investors are seen at the Tadawul stock exchange in Saudi Arabia. AP

Luberef's IPO plans come amid a bumper year for company listings in the Gulf and Mena regions, which is bucking the global slowdown in global markets, with Saudi Arabia and the UAE making up the majority of new listings on the back of high oil prices.

Middle East IPOs have raised about $21 billion this year — the highest share for the Gulf region after 2019 when Aramco went public in a $29 billion offering that was the world’s largest.

Last month, Americana, the largest quick-service restaurant operator in the Mena region, raised $1.8 billion from its IPO, paving the way for its listing on the Tadawul bourse and the Abu Dhabi Securities Exchange, the Arab world's two largest stock markets.

Americana's IPO is Saudi Arabia's largest IPO in 2022, with the company becoming the first to be dually listed in the kingdom and the UAE.

Luberef is Saudi Arabia's third-largest IPO this year after second-placed Nahdi Medical, the kingdom's biggest pharmacy chain, which raised $1.36 billion.

Established in 1976, Luberef operates two production plants on the west coast of the kingdom — in Yanbu and Jeddah — with a combined annual production capacity of 1.3 million metric tonnes of base oils, according to its website.

The Aramco unit makes base oils used in lubricants for motor vehicles, ships and industrial machinery.

Base oils are used across various sectors where hydraulic, turbine and transmission fluids are required in production and manufacturing machinery, such as in the steel industry, food production, textiles and clothing.

Luberef’s products are sold mainly in the company’s key end markets, including Saudi Arabia and other countries in the Mena region, Asia, the Americas and Europe, it said.

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Best bowling figures: 6-14 – Sohail Tanvir (for Rajasthan Royals against Chennai Super Kings in 2008)

Best average: 16.36 – Andrew Tye

Best economy rate: 6.53 – Sunil Narine

Best strike-rate: 12.83 – Andrew Tye

Best strike-rate in an innings: 1.50 – Suresh Raina (for Chennai Super Kings against Rajasthan Royals in 2011)

Most runs conceded in an innings: 70 – Basil Thampi (for Sunrisers Hyderabad against Royal Challengers Bangalore in 2018)

Most hat-tricks: 3 – Amit Mishra

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“This is an inactivated vaccine. Simply what it means is that the virus is taken, cultured and inactivated," said Dr Nawal Al Kaabi, chair of the UAE's National Covid-19 Clinical Management Committee.

"What is left is a skeleton of the virus so it looks like a virus, but it is not live."

This is then injected into the body.

"The body will recognise it and form antibodies but because it is inactive, we will need more than one dose. The body will not develop immunity with one dose," she said.

"You have to be exposed more than one time to what we call the antigen."

The vaccine should offer protection for at least months, but no one knows how long beyond that.

Dr Al Kaabi said early vaccine volunteers in China were given shots last spring and still have antibodies today.

“Since it is inactivated, it will not last forever," she said.

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How to donate

Text the following numbers:

2289 - Dh10

6025 - Dh 20

2252 - Dh 50

2208 - Dh 100

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*numbers work for both Etisalat and du

MWTC

Tickets start from Dh100 for adults and are now on sale at www.ticketmaster.ae and Virgin Megastores across the UAE. Three-day and travel packages are also available at 20 per cent discount.

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Label: Warner Records

Number of tracks: 11

Rating: 4/5

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

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Updated: December 28, 2022, 1:32 PM