Saudi Aramco's Luberef Set for IPO

Aramco's base oil subsidiary, Luberef, has won approval from the Kingdom's stock market regulator, Capital Market Authority (CMA), to launch its IPO. (Asharq Al-Awsat)
Aramco's base oil subsidiary, Luberef, has won approval from the Kingdom's stock market regulator, Capital Market Authority (CMA), to launch its IPO. (Asharq Al-Awsat)
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Saudi Aramco's Luberef Set for IPO

Aramco's base oil subsidiary, Luberef, has won approval from the Kingdom's stock market regulator, Capital Market Authority (CMA), to launch its IPO. (Asharq Al-Awsat)
Aramco's base oil subsidiary, Luberef, has won approval from the Kingdom's stock market regulator, Capital Market Authority (CMA), to launch its IPO. (Asharq Al-Awsat)

Saudi Al-Ahli Tadawul announced a potential initial public offering (IPO) for one of Saudi Aramco's subsidiaries.

Ahli Capital announced its capacity as the underwriting manager, financial advisor, institutional underwriting book manager, international coordinator, and underwriter of Citigroup Saudi Arabia, HSBC Saudi Arabia, and Morgan Stanley Saudi Arabia as the financial advisers, global coordinators, and underwriters of public offerings.

The company said that Aramco's base oil subsidiary, Luberef, has won approval from the Kingdom's stock market regulator, Capital Market Authority (CMA), to launch its IPO and list its shares on the primary market of the Saudi Stock Exchange (Tadawul).

Luberef is one of the world's largest producers of base oils and produces one of every eight barrels of base oils globally, with a total capacity to produce 1.3 metric tons per year of base oils.

Luberef will sell 50 million shares, or 29.7 percent of the company's issued share capital, through the IPO on the Tadawul stock exchange, the company said in a statement on Sunday.

The final pricing of the offer shares will be determined at the end of the book-building period, it stated.

The company obtained Tadawul's approval for its request to list its shares in the main market on November 24 and also received the approval of the Capital Market Authority for its bid to offer 50 million ordinary shares.

The shares are open for subscription by institutional, individual, and qualified foreign investors.

Luberef pointed out that the shares will be offered for subscription to individual and institutional investors, including institutional investors outside the US, in offshore transactions following Regulation S under the US Securities Act of 1933, as amended (the Securities Act).

A maximum of 12.5 million shares, or 25 percent of the total share offering, will be allocated to individual investors, the company said.

Meanwhile, the main Saudi stock index fell 142.29 points to close at 10796.46 points, with transactions worth SR2 billion.

About 74 million shares were traded through more than 241,000 deals, in which 33 companies recorded an increase in value, while 173 companies closed in decline.

The Saudi parallel market (Nomu) plunged 300.87 points to close at 18866.13 points, with a value of SR68 million, and the number of shares reached more than 392,000 shares shared by 1157 transactions.



Saudi Business and Job Growth Hit 14-Year High

Riyadh, Saudi Arabia (AFP)
Riyadh, Saudi Arabia (AFP)
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Saudi Business and Job Growth Hit 14-Year High

Riyadh, Saudi Arabia (AFP)
Riyadh, Saudi Arabia (AFP)

Business conditions in Saudi Arabia’s non-oil private sector improved notably in June, driven by a marked rise in customer demand and expanded production, according to the latest Riyad Bank Purchasing Managers’ Index (PMI) data.

New business volumes surged, fueling the fastest pace of employment growth since May 2011. This strong demand for workers pushed wage costs to record highs, adding pressure on overall expenses and contributing to a fresh increase in output prices.

The headline PMI climbed to 57.2 in June from 55.8 in May - its highest level in three months and slightly above the long-term average of 56.9. The reading signaled a robust improvement in the health of the non-oil private sector economy.

Companies reported another rise in new orders last month, with growth accelerating following a recent low in April. Many firms cited gaining new clients, alongside improved marketing efforts and stronger demand conditions. Domestic sales were the main driver of the increase, while export sales edged up slightly.

Purchasing Activity Expands

Production continued to expand through the end of Q2, although growth slowed to a 10-month low. Purchasing activity picked up sharply as companies sought to secure additional inputs to meet rising demand, with the pace of purchase growth reaching its fastest in two years.

Employment growth accelerated as businesses rapidly expanded their workforce to keep pace with incoming orders, pushing hiring to the highest level since mid-2011. This strong recruitment trend, which began early in 2025, was largely driven by a rising need for skilled workers, prompting companies to increase salary offers. Consequently, overall wage costs rose at the fastest rate since the PMI survey started in 2009.

Facing mounting cost pressures from higher raw material prices, firms raised their selling prices sharply in June , the biggest increase since late 2023, reversing declines recorded in two of the previous three months. This price hike largely reflected the passing of higher operating costs onto customers, although some companies opted for competitive pricing strategies by cutting prices.

Resilient Economic Outlook

Looking ahead, non-oil private sector firms remained confident about business activity over the next 12 months. Optimism hit a two-year high, supported by resilient domestic economic conditions, strong demand, and improved sales. Supply-side conditions also showed positive momentum, with another strong improvement in supplier performance.

Dr. Naif Alghaith, Chief Economist at Riyad Bank, said: “Future expectations among non-oil companies remain very positive. Business confidence reached its highest level in two years, underpinned by strong order inflows and improving local economic conditions.”

He added: “However, cost pressures became more pronounced in June, with wage growth hitting record levels as companies compete to retain talent. Purchasing prices also rose at the fastest pace since February, partly driven by increased demand and geopolitical risks. Despite these challenges, companies broadly raised selling prices to recover from May’s declines, reflecting an improved ability to pass higher costs onto customers.”