January 27, 2023

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Jadwa plans $532m deals, more offers

Saudi Arabia’s Jadwa Investment Co. plans to invest around 2 billion riyals ($532 million) in new private equity deals and list stakes in three of its portfolio companies by 2025 to capitalize on the region’s rapid economic growth . The private equity firm is in advanced discussions to complete two private equity deals over the next 12 months and is focused on the consumer and healthcare industries, said Tariq Al-Sudairy, managing director and chief executive officer, in written comments to Bloomberg.

In a separate press release Tuesday, Jadwa said it had divested its 30 percent stake in Saudi Aramco Base Oil Co., the state-owned oil producer’s refining unit that holds its 70 percent stake.

The IPO of 50 million shares of the refinery known as Luberef was at the top end of the price range, raising 4.95 billion riyals. It will be traded on the Saudi stock exchange on Wednesday.

Luberef is the latest IPO worth over $1 billion in the oil-rich Gulf region, braving a global slowdown in stock sales. The deal comes late in the year, when many investors are usually reluctant to take risks. High oil prices have benefited Gulf economies, markets and corporate balance sheets, and contributed to a flood of stock market listings.

It is also Jadwa’s eighth private equity exit, bringing the company’s total private equity distributions to clients to 11 billion riyals, the statement said. Bloomberg News