Lumi Rental Company, a car rental and leasing company in the Kingdom, has announced the offer price range and commencement of participating entities’ bidding and book building for its initial public offering on the main market of the Saudi Exchange. The company’s approved red herring prospectus, which contains full details of the offering, was published on the Capital Market Authority website on Aug. 24.
The price range for the offering has been set between SR62 ($16.5) and SR66 per share, implying a total offering size of SR1.023 billion to SR1.089 billion. The price range for the offering implies a market capitalization at a listing of SR3.410 billion to SR3.630 billion. The institutional book building period commenced on Aug. 30 and will end on Sept. 5. The final offer price will be determined at the end of the institutional book-building period and is expected to be announced on Sept. 7.
On March 29, the CMA approved the company’s application for an IPO of 16,500,000 shares, representing 30 percent of Lumi’s issued share capital. The net proceeds of the offering will be received by the selling shareholder, Seera Group Holding.
Saudi Fransi Capital has been appointed by the company as financial adviser, lead manager, and underwriter. Lumi has appointed Saudi Fransi Capital and EFG Hermes as joint bookrunners.
Established by Seera Group Holding in 2006, Lumi is one of the leading car rental companies in the Kingdom with a 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.
