Saudi Aramco Base Oil Company – Luberef announces the results of the subscription period for individual investors

Saudi Aramco Base Oil Company – Luberef (“Luberef” or the “Company”), one of the largest base oils producers in the world and the leading base oils producer in the Kingdom of Saudi Arabia (the “Kingdom”) and SNB Capital Company, HSBC Saudi Arabia, Citigroup Saudi Arabia and Morgan Stanley Saudi Arabia, as joint financial advisors, announce the successful completion of the offering period for retail investors (“Retail Subscription Period”) for the Company’s initial public offering (“IPO” or the “Offering”).

The retail subscription process, comprising of a maximum of 12,511,250 representing 25% of the total Offering shares, commenced on Wednesday, 14 December 2022G and ended at 5 pm on Sunday, 18 December 2022G. It witnessed participation by 524,848 investors, indicating a coverage of 2.3 times, with a total demand of SAR 2.850 billion (USD 0.76 billion)[1]. Individual investors will receive a minimum of 10 shares each, while the remaining shares will be allocated on a pro-rata basis for the remaining demand with an average allocation factor of 30.8537%.

The final offer price for the Offering has been set at SAR 99 per share (“Final Offer Price”), implying a market capitalization of SAR 16.706 billion (USD 4.455 billion) at listing. This was after the successful completion of the bookbuilding process, which ended with an institutional order book that was over-subscribed by 29.5 times of the total offering and an order book of about SAR 146.4 billion (USD 39.0 billion).

Based on the results of the retail subscription process, the shares allocated to Participating Parties will be reduced to 37,533,750 Offer Shares, representing 75% of the total Offering.

More information about the Company, the Offering and the subscription process is available in the final prospectus dated 24 November 2022G.

Background to the Offering:

·      The CMA’s and the Saudi Exchange’s approvals have been obtained for the Offering and listing as outlined below:

•

o An offer of 50,045,000 ordinary shares, representing 29.6562963% of the Company’s issued share capital of 168,750,000 shares, by way of a sale of existing shares by Jadwa Industrial Investment Company.

o The Saudi Arabian Oil Company (Saudi Aramco) will not sell any of its shares in the Offering and will continue to own 70% of the Company’s share capital following completion of the Offering.

o The Company’s shares will be listed on the Main Market of the Saudi Exchange following the completion of the Offering and the listing formalities with the CMA and the Saudi Exchange.

o The Offer Shares will be offered to institutional investors, including institutional investors outside the United States in “offshore transactions” in accordance with Regulation S under the Securities Act, and individual investors.

• A maximum of 12,511,250 ordinary shares, representing 25% of the total Offer Shares, will be allocated to individual investors. If individual investors do not subscribe for all the shares allocated to them, the Joint Financial Advisors may reduce the number of shares allocated to them in proportion to the number of shares for which they subscribed.