Coverage of individuals’ subscription in the “Luberef” offering is 230%.. and the allocation of 10 shares as a minimum

NCB Capital, in its capacity as Underwriting Manager, Financial Advisor, Institutional Underwriting Book Manager, International Coordinator and Underwriter, announced Citigroup Saudi Arabia, HSBC Saudi Arabia and Morgan Stanley Saudi Arabia as financial advisors, international coordinators and underwriters for the potential initial public offering of Saudi Aramco. For Base Oils – Luprev, completion of the offering process for the individual category and allocating a minimum of 10 shares for each individual subscriber included in the subscription application.

The company stated in a statement on Tadawul Saudi Arabia today, Wednesday, that the remaining shares were allocated on a pro rata basis based on the size of each subscriber’s request to the total remaining shares to be subscribed for, noting that fractional shares were collected and allocated in a descending manner, starting with the highest requests by Stock per order until sold out.

Read more: All you need to know about “Luberef”.. Important details and information

The number of individual participants reached 524.8 thousand, while the number of shares offered to individuals amounted to 12.51 million shares, as the offering price was set at 99 riyals per share.

The subscription of individuals was covered by 230.1%, while the total value of individual applications amounted to 2.85 billion riyals.

A minimum of 10 shares were allocated to each individual, while the remaining shares were allocated on a pro-rata basis at 30.8537%.

The company indicated that the subscription surplus of individual subscribers will be refunded no later than December 28, 2022.

The subscription period for the individuals segment started on Wednesday, December 14, 2022, and ended on Sunday, December 18, 2022, with their subscription to the entire shares allocated to this segment, amounting to 12.51 million shares, constituting 25% of the total shares offered.

Read more: “Luberef” IPO in the Saudi market.. Details of the offering dates and the most important information

Important projects “Luberef”.

The first expansion project of the Yanbu facility increased the company’s production capacity by 710,000 metric tons, and operating at full capacity led to an increase of approximately 50% in the volume of sales of the second category of base oils in 2021 AD compared to 2020 AD.

Compound annual real GDP growth is expected to be around 2.5% and 3.3% from 2021G to 2030G8, respectively, and this expected growth is supported by macro fundamentals in the Kingdom and the Middle East region.

The company intends to continue benefiting from this organized growth in the volume of global demand for base oils of the second and third categories, which is expected to achieve a compound annual growth rate of 3.5% and 4.8% between 2022 AD and 2030 AD, respectively.

The next phase of the company’s growth process includes the second expansion project in Yanbu, which is planned to be completed in 2025, which is expected to add additional production capacity for the second category of base oils and introduce production capacity for the third category of base oils to the Kingdom.

The company’s relationship with Saudi Aramco and its portfolio of assets provides the company with a platform for more opportunities and growth, from the expected increase in global demand for the second and third categories of base oils by approximately 5 million metric tons between 2022 AD and 2030 AD.