$1bn Petromin Saudi IPO planned
Mumbai, India, June 2, 2010
India's Hinduja Group plans to launch the initial public offering in Saudi Arabia, of its subsidiary Petromin, to raise $800 million to $1 billion this year, a group official said on Wednesday.
Lubricants maker Petromin is an equal joint venture between the Dabbagh Group of Saudi Arabia and the Gulf Oil International Group, a part of the Hinduja Group.
The group has appointed Saudi British Bank, HSBC's affiliate in the kingdom, for managing the IPO, said Sanjay Hinduja, chairman of Gulf Oil International.
'Soon, we will be finalising the timeline and the exact valuations,' he told reporters, adding the group is aiming for a listing in calendar 2010 or latest in the first quarter of 2011.
The Hinduja Group plans to sell 30 per cent of Petromin through the IPO. The lubricants maker owns a third of the downstream oil products business in Saudi Arabia and has $500 million in annual revenue, Hinduja said.
Petromin is looking for acquisitions in the Gulf region to boost its business, he said.
Gulf Oil International and the Dabbagh Group had bought Petromin a few years ago from Saudi Aramco and Mobil Investments, an affiliate of ExxonMobil.
Hinduja said the group was also planning an IPO in Hong Kong for Gulf Oil Marine, another unit of Gulf Oil International that provides the shipping industry with marine lubricants and a range of technical service.
Gulf Oil is planning to tie-up with a British firm to enter the defense business in India, Hinduja said, without giving details.-Reuters