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Saudi Aramco Refiner’s Lackluster Debut Bucks Regional Trend

  • Jadwa sold 30% stake while Aramco holds onto 70% of shares
  • Gulf firms raised more than $20 billion from IPOs this year
Oil transport pipes in Saudi Arabia.
Oil transport pipes in Saudi Arabia.

Photographer: Simon Dawson/Bloomberg

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Saudi Aramco Base Oil Co., a refining unit of the state-owned oil producer, slumped in its trading debut following an initial public offering that raised $1.32 billion.

Luberef, as the refiner is known, dropped as much as 6.6% in Riyadh to 92.5 riyals ($24.61), bucking the trend for strong debuts in the Gulf region amid the gloomy outlook for the global economy. It trimmed losses to 2.7% by 11:28 a.m. local time, valuing the company at 16.3 billion riyals.