Saudi Arabian lubricants blender Petromin plans to raise up to $1 billion via an initial public offering, Bloomberg reported on Jan. 13.
According to the report, attributed to people familiar with the IPO, the company so far engaged Saudi National bank and Moelis & Co. and may add more banks to the syndicate.
Petromin was established by royal decree of Saudi Arabia in 1968 as a joint venture between Saudi Aramco and Exxon Mobil. In 2007 Gulf Oil International formed a joint venture with family-owned Saudi conglomerate Al Dabbagh Group and bought Petromin for U.S. $200 million. Al Dabbagh bought out Gulf Oil’s stake six years later. Back in 2010, Gulf Oil parent considered an IPO for Hinduja Group and hoped to raise $800 million to $1 billion, Reuters reported at that time.
Petromin operates a lubricants and greases blending plant in Jeddah, Saudi Arabia, and a blending plant in Ryadh. The Jeddah plant has 250,000 metric tons per year lubricant production capacity and 18,000 t/y grease production capacity. Originally built in 1968, in 2011, the plant was upgraded with automated blending technology, high-speed filling lines and a laboratory.
The Riyadh plant has 75,000 t/y lubricant production capacity. Commissioned in 1981, the plant is connected to drum manufacturing facilities operated by Greif.
In addition to lubricants, Petromin’s business verticals include automotive manufacturing and sales, fleet solutions, fuel stations, car maintenance, automotive parts, used cars and e-mobility solutions.