A unit of Saudi Aramco, Saudi Aramco Base Oil Co., also known as Luberef, is planning an IPO that could raise more than $1 billion, Bloomberg reported citing people familiar with the matter.

The local unit of HSBC Holdings Plc and SNB Capital have been appointed to advise on the offering. The plan is to sell a 30 percent stake owned by Jadwa Investment, Bloomberg said in the report.

Jadwa Investment became the first domestic firm to participate in a JV with Aramco in 2007, when Exxon Mobil sold Jadwa its 30 percent stake in Luberef.

The firm produces 1.2 million tonnes a year of base oils such as lubricants, Bloomberg reported citing Aramco’s 2019 IPO prospectus. 

(Writing by Seban Scaria; editing by Daniel Luiz)