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)
TT
20

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.



Gold Gains over 1% as Dollar, Yields Ease; Spotlight on Trade

A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
TT
20

Gold Gains over 1% as Dollar, Yields Ease; Spotlight on Trade

A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo

Gold prices gained over 1% on Monday as the dollar and US bond yields weakened amid uncertainty over trade talks ahead of a US deadline of August 1 for countries to strike deals or face more tariffs.

Spot gold was up 1.2% at $3,390.79 per ounce at 9:52 ET (1352 GMT). US gold futures were up 1.3% to $3,402.40.

The US dollar index was down 0.4%, making dollar-denominated gold more affordable for buyers using other currencies, while benchmark 10-year U.S. Treasury yields hit a more than one-week low, Reuters reported.

"With the August 1st deadline looming, it brings a level of uncertainty to the market and that certainly is supportive," said David Meger, director of metals trading at High Ridge Futures.

The European Union is exploring a broader set of possible counter-measures against the US as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats.

On the interest rate front, traders are pricing about a 63% chance of a rate cut in September, according to the CME FedWatch Tool.

U.S. Treasury Secretary Scott Bessent said the entire Federal Reserve needed to be examined as an institution and whether it had been successful.

Talk of earlier than expected U.S. rate cuts is building, with speculation around a possible replacement of Fed Chair Jerome Powell and reshaping of the Fed adding to market jitters, Meger said.

Gold is considered a hedge against uncertainty and tends to perform well in a low interest rate environment.

Data showed that the world's leading gold consumer, China, brought in 63 metric tons of the precious metal last month, the lowest amount since January. Its imports of platinum in June fell 6.1% from the prior month.

Spot silver gained 1.8% to $38.86 per ounce, platinum rose 2.2% to $1,453.17 and palladium was 3.5% higher at $1,284.46.