Saudi Arabia bucks global slump in IPOs
Despite a slowdown in IPOs in developed markets like the United States and Europe, due to the global economic downturn and stock market volatility, the MENA region and in particular Saudi Arabia are thriving.
Saudi Aramco’s base oil subsidiary Luberef is set to raise around 4.95 billion riyals ($1.32 billion) from its planned 30% initial public offering (IPO) within the next few days. The company set the final share price at the top end at 99 riyals ($26.4) per share amid strong investor demand.
Luberef’s upcoming share float follows Americana, a regional fast food operator, which raised $1.8 billion through a dual listing on Tadawul (Saudi Arabia’s bourse) and Abu Dhabi Securities Exchange (ADX) at the end of November. The firm's market debut on Dec. 12 saw its shares surge by 12.6% to 2.95 dirhams on the ADX, and by 2.6% to 2.75 riyals on Tadawul.
