EFG Hermes says its investment banking division successfully completed advisory on the $290 million initial public offering (IPO) of Lumi Rental Company, one of the leading car rental and leasing firms in Saudi Arabia. EFG Hermes acted as joint bookrunner on the IPO.
Lumi Rental Company offered a total of 30% of its total issued share capital, equivalent to 16,500,000 shares, at SR66 ($17.6) per share, implying a market capitalisation of SR3.63 billion. The IPO witnessed a robust demand of SR102.9 billion for shares from local, regional, and international investors, with the total book covered approximately 94.5 times.
Net proceeds of the offering will be received by the Selling Shareholder, Seera Group Holding (formerly known as Al Tayyar Travel Group). The company began trading today under the symbol 4262.
Mohamed Fahmi, EFG Hermes’ Co-Head of Investment Banking, commented: “The Lumi Rental Company's IPO reflects the growing confidence of investors in the Saudi market, which has emerged as a global investment powerhouse.
Diversifying local demand
“Our 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.
This listing marks the Firm’s fifth IPO this year and is the latest in a series of consecutive transactions EFG Hermes 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 on the Abu Dhabi Securities Exchange; Abraj Energy Services on the Muscat Stock Exchange (MSX); and Al Ansari Financial Services PJSC on the Dubai Financial Market (DFM).--TradeArabia News Service