According to two sources speaking to Reuters, Saudi Fransi Capital (1050.SE) and EFG Hermes (HRHO.CA) have been recruited by the Saudi Arabian car rental company Lumi to organize the sale of 30% of its shares in an upcoming initial public offering (IPO). The Capital Market Authority (CMA) of Saudi Arabia granted last week’s approval for the float to Seera (1810.SE), the largest travel business in the kingdom and the owner of Lumi. Companies that receive CMA clearance have six months to begin their public share offering.
One of the sources, who wished to remain anonymous because the information is private, stated that Saudi Fransi Capital has been chosen by the Riyadh-based Lumi Rental Company to serve as financial advisor and joint bookrunner on the deal. According to the insider, EFG Hermes has joined Saudi Fransi as a joint bookrunner.
According to Seera’s financial figures, Lumi has a fleet of more than 19,000 vehicles, and its earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 53% last year to 174 million Saudi riyal ($46.36 million). Lumi announced last September the opening of a showroom in Riyadh to offer used vehicles to customers. In the coming months, it plans to establish car showrooms in Jeddah and Dammam. Saudi Arabia has actively pushed international companies to set up shop in the kingdom, while also developing a tourism industry, which is anticipated to boost demand for car rentals.