Riyadh: Saudi Arabia’s Jadwa Investment Co. plans to invest about two billion riyals ($532 million) in new private equity deals and to list stakes in three of its portfolio companies by 2025 as it looks to capitalize on rapid economic growth in the region.
The private equity firm is in advanced talks to complete two private equity deals in the next 12 months, and is focusing on consumer and health care industries, Tariq Al-Sudairy, managing director and CEO, said in written comments to Bloomberg.
In a separate press release on Tuesday, Jadwa said it has fully divested its 30 per cent stake from Saudi Aramco Base Oil Co., the refining unit of the state oil producer, which is holding onto its 70 per cent stake.
The IPO of 50 million shares in the refiner, known as Luberef, priced at the top end of the range, raising 4.95 billion riyals. It will start trading on Wednesday on the Saudi exchange.
Luberef is the latest billion-dollar plus IPO in the Gulf region, bucking a global slowdown in share sales. The deal comes late in the year, when many investors typically shy away from taking on risk. High oil prices have benefited Gulf economies, markets and companies’ balance sheets, helping drive a flurry of listings.
It also marks Jadwa’s eighth private equity exit, bringing the firm’s total private equity distributions to clients to 11 billion riyals, it said in the statement.