SAUDI oil giant Aramco's subsidiary Luberef expects to raise up to 4.95bn riyals (£1.07bn) from its initial public offering (IPO), it said, if it prices at the top of a range announced on Sunday.

Luberef will sell nearly 30 per cent of the company's issued share capital, or 50.045m shares, at between 91 and 99 riyals each, the company said in a statement.

State-led IPO programmes in Saudi Arabia, Abu Dhabi and Dubai have helped equity capital markets in the oil-rich Gulf, in sharp contrast to the United States and Europe, where global banks have been trimming headcount in a dealmaking drought.

Gulf issuers have raised about $16bn (£13bn) through such listings this year, accounting for about half of total IPO proceeds from Europe, the Middle East and Africa, Refinitiv data shows.

Aramco owns 70 per cent of Luberef and Saudi investment bank Jadwa Investment the remaining 30 per cent.

Saudi Aramco's record listing in late 2019, later boosted to total $29.4bn (£23.9bn) in proceeds, was the world's largest IPO.

Aramco, which has raised billions from deals linked to its pipeline infrastructure, is also planning an IPO of its energy-trading business.

The kingdom's privatisation programme is a cornerstone of its Vision 2030 economic agenda to wean the economy off oil, build new industries and create jobs.

Reuters

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