Saudi Aramco Base Oil gets nod for $1b IPO

Saudi Aramco Base Oil Co., a unit of the stateowned oil producer, has received regulatory approval for an initial public offering in Riyadh, as the world’s biggest crude producer looks to list some of its subsidiaries.

The IPO will consist of the sale of 50 million shares — a 29.7 per cent stake — in the company, Saudi Arabia’s Capital Market Authority said on Thursday. The unit, also known as Luberef, makes base oils used in lubricants for motor vehicles, ships and industrial machinery.

The refinery business, with operations in Saudi cities Jeddah and Yanbu, is 70 per cent owned by Saudi Aramco, while the rest is held by local private equity firm Jadwa Investment. Citigroup Inc., HSBC Holdings Plc and SNB Capital have been hired to advise on the offering that could raise about $1 billion.