Lumi Rental Company, one of the leading car rental and leasing companies in the Kingdom of Saudi Arabia, started trading on the Saudi Exchange on Monday under the symbol 4262, after raising $290m in its initial public offering (IPO).
The IPO, which was advised by EFG Hermes, a leading investment bank in Frontier and Emerging Markets (FEM), offered 30% of the company’s total issued share capital, equivalent to 16.5 million shares, at SAR 66 per share, implying a market capitalization of SAR 3.63bn. The IPO attracted a strong demand of SAR 102.9bn ($27.4bn) from local, regional, and international investors, with the total book covered about 94.5 times. The net proceeds of the offering will be received by the selling shareholder, Seera Group Holding (formerly known as Al Tayyar Travel Group).
Mohamed Fahmi, EFG Hermes’ Co-Head of Investment Banking, said, “We are immensely proud of the role we played in Lumi Rental Company’s IPO — a transaction that reflects the growing confidence of investors in the Saudi market, which has emerged as a global investment powerhouse following rigorous efforts to deepen the market and showcase the Kingdom’s potential across various sectors. Our distinctive role in this transaction was instrumental in diversifying the local demand witnessed in the majority of Saudi IPOs, as we successfully secured quality regional and global investor participation by leveraging our unparalleled global distribution network and top-notch research capabilities that consistently raise the bar in the Saudi market. This IPO comes on the heels of the conclusion of our successful EFG Hermes Saudi Forum in London this month which was done in collaboration with the Saudi Exchange and included the Capital Markets Authority (CMA) as an honorary guest, reaffirming our commitment to being a trusted partner for companies seeking to unlock value and for investors looking to us as a gateway into this burgeoning market.”
Lumi was established by Seera Group Holding in 2006 as a sole proprietorship to provide car rental services among a portfolio of travel companies. It is now one of the leading car rental companies in the Kingdom with a unique and diverse offering, including lease services to corporate and government sector clients, car rentals via digital channels, and a network of 35 airport and city branches across the Kingdom, and used car sales. Since 2016, the company has achieved significant scaling; increasing from a fleet size of 3,603 vehicles to 24,730 vehicles as of 30 April 2023.
This listing marks the fifth IPO that EFG Hermes has advised on this year and is the latest in a series of consecutive transactions that the firm has advised on in the GCC over the years. In 2023, the firm advised on the successful IPOs of ADNOC L&S and ADNOC Gas Plc on the Abu Dhabi Securities Exchange (ADX); Abraj Energy Services on the Muscat Stock Exchange (MSX); and Al Ansari Financial Services PJSC on the Dubai Financial Market (DFM).
