The Law Firm of Salman M. Al-Sudairi and Latham & Watkins have advised SNB Capital, HSBC Saudi Arabia, Morgan Stanley Saudi Arabia and Citigroup Saudi Arabia as the underwriters of Saudi Aramco Base Oil Company – Luberef (Luberef), one of the largest base oils producers in the world and the leading base oils producer in Saudi Arabia, on Luberef’s SAR4.95 billion (approximately US$1.3 billion) initial public offering (IPO) and listing of ordinary shares on the Saudi Exchange’s Main Market.
The IPO involved the offer and sale of 50.045 million ordinary shares, representing 29.66% of Luberef’s issued share capital of 186.75 million shares by way of a sale of existing shares by Jadwa Industrial Investment Company. Of the total shares sold in the IPO, 75% were allocated to institutional investors and the remaining 25% to retail investors. The final offer price was set at SAR99 (US$26.4) per share.
Luberef was incorporated in 1976 as a pure play base oil producer and currently operates two production facilities on Saudi Arabia’s west coast, producing various base oils and byproducts. Luberef’s base oil production capacity of 1.3 million MT per annum.
The team was led by Law Firm of Salman M. Al-Sudairi principal and Latham partner Salman Al-Sudairi, with Riyadh associates Najla Al-Gadi and Aya AlHumaid. The Latham team was led by London corporate partners James Inness and Ryan Benedict, with London associates Koushik Prasad and Tom Channing, and Milan associate Irene Pistotnik.