Saudi private equity firm Jadwa Investment is to sell its 29.66% stake in its Luberef joint venture with Saudi Aramco (70%) in an IPO which is expected to raise up to $1.3bn. The shares will start trading on the Tadawul bourse in early 2023. Jadwa acquired its shares from ExxonMobil in 2007 (MEES, 12 November 2007).

Luberef is the second largest base oil producer in the Middle East, behind Shell, and has facilities in Jeddah and Yanbu on the Red Sea coast. These plants combine for 1.3mn t/y capacity of Group I and Group II base oils. The Yanbu plant can produce 275,000 t/y of Group I base oils and is due to close in 2026. This will be offset by the $150-200mn Yanbu Growth II project, due for completion in 2025, which will maintain capacity at 1.3mn t/y and enable production of 670,000 t/y Group III base oils. (CONTINUED - 201 WORDS)