SR100m lubricant plant to be set up in Jazan

Updated 12 February 2015

SR100m lubricant plant to be set up in Jazan

Prince Turki bin Mohammed bin Nasser, director of international trade at the Ministry of Commerce and Industry and supervisor of Jazan Industrial City, on Thursday signed an agreement with Faiz Mohammed, managing director of Al-Mohtesham Trading, to establish a SR100 million lubricant plant in the city.
Speaking to Arab News after signing the accord, Mohammed, a prominent Indian businessman, said the plant would produce 2.4 million tons of lubricants annually. “This will be our third lubricant plant in the GCC. Other plants are in Dubai and Oman,” he said while disclosing plans to expand his company’s operations in Saudi Arabia.
Sheikh Rafik Mohammed, chairman of Gammon Group, which is developing the SR75 billion Jazan Industrial City, said a number of international companies have expressed their intent to implement their projects in the new city.
“The Jazan industrial city will spur the economic growth of Jazan and bring about a face-lift for the region,” said Sheikh Rafik, who is spearheading the campaign to develop a state-of-the-art city with various industries including pharmaceuticals and petrochemicals.
Prince Turki has been authorized by the government to develop the city by bringing foreign investors to build the city’s entire infrastructure facilities as well as to establish plants for automobile industries, IT parks, food processing plants, building materials, hospitals and hotels.
“The main attraction of this Jazan venture is that if major companies are ready to invest and transfer their technology, the government will pay them 75 percent of their project cost in soft loans for 20 years,” Mohammed told Arab News.


Aramco shares to make debut as biggest IPO gets bigger

Updated 11 December 2019

Aramco shares to make debut as biggest IPO gets bigger

  • Samba Capital, NCB Capital and HSBC Saudi Arabia issued a statement late Monday
  • Saudi subscribers were allocated 96.6 percent of the retail offering

LONDON : Saudi Aramco shares make their stock market debut on Wednesday as it emerged that the oil giant could raise even more from its already record-breaking share sale.

Aramco will exercise its 15 percent “greenshoe option” either in part or in whole during the first 30 days of its trading period, its lead managers said.

A greenshoe option is financial jargon for a clause that allows an underwriter the right to sell investors more shares than planned if demand proves higher than anticipated.

Samba Capital, NCB Capital and HSBC Saudi Arabia issued a statement late Monday confirming an earlier report on the Al Arabiya news channel citing an NCB Capital executive.

It means the share sale could generate as much $29.4 billion if exercised fully. The main IPO raised $25.6 billion on Thursday.

Samba Capital said that the IPO was hugely oversubscribed, attracting aggregate subscriptions of SR446 billion, representing coverage of 465 percent.

The listing and trading of the company’s shares on Tadawul starts just four working days after the end of the subscription phase, Samba noted.

The number of individual subscribers was 5.056 million, who bought SR49.2 billion worth of shares.

Saudi subscribers were allocated 96.6 percent of the retail offering with non-Saudis (expatriates and GCC nationals) getting 3.4 percent. 

For the institutional tranche, the final value of subscriptions totaled SR397 billion.

The Saudi Aramco IPO is a key part of the Kingdom’s plan to transform its economy by reducing its reliance on oil, developing its financial markets and attracting increased levels of foreign direct investment.

Saudi Finance Minister Mohammed Al-Jadaan said that the proceeds from Aramco’s IPO would be reinvested, helping to create more revenue channels for the government.

The Aramco IPO is expected to pave the way for more privatizations in the Kingdom.

“Privatization is at the top of the government’s priorities,” Al-Jadaan told reporters on Monday.

“We will continue to support big projects and will continue to support promising projects,” he said. “Enabling the private sector is the top priority of Vision 2030. We have more to come and our journey toward Vision 2030 demands