April 10, 2022 [Bloomberg] – Saudi Aramco Base Oil Co., a unit of the state-controlled oil producer, is planning an initial public offering that may raise over $1 billion, according to people familiar with the matter.

Luberef, as the refining company is also known, appointed the local unit of HSBC Holdings Plc and SNB Capital to advise on the offering, the people said, asking not to be identified as the information is private. The plan is to sell a 30% stake owned by Jadwa Investment, the people said.

Saudi Arabia’s stock market is one of the 10 best performing markets in the world this year. That’s attracting a slew of IPOs to the exchange, with its Chief Executive Officer Khalid Al-Hussan saying last month that more than 70 companies have applied to sell shares.

Luberef would be joining several Aramco subsidiaries already listed on the Saudi stock exchange, including chemicals maker Saudi Basic Industries Corp., and Rabigh Refining & Petrochemical Co. The firm produces 1.2 million tons a year of base oils such as lubricants, according to Aramco’s 2019 IPO prospectus.

Saudi Arabia-based investment firm Jadwa acquired the stake in Luberef in 2007 from Exxon Mobil Corp., which originally invested in the development of Luberef’s refinery in 1978. Jadwa, Aramco, HSBC, and SNB Capital declined to comment, while Luberef didn’t respond to request for comment.
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