Retail investors subscribe to 1.65 mln shares of Lumi today ahead of TASI listing

Logo of Lumi Rental Co.

Individual investors will start today, Sept. 12, subscribing to 1.65 million shares of Lumi Rental Co. at SAR 66 each, as set by the book-building process. 

The retail subscription will run for one day only.

In March, the Capital Market Authority (CMA) gave the green light for Lumi to float 16.5 million shares, or 30% of its SAR 550 million capital, divided into 55 million shares, on the Saudi Exchange (Tadawul). The shares are sold by Seera Holding Group, which currently owns 100% of Lumi.

The institutional offering closed last week. It was 94.5x covered. The total value of orders during the book-building process reached nearly SAR 102.9 billion.

Lumi’s initial public offering (IPO) is the fifth share sale on the main market following those of Morabaha Marina Financing Co. (MRNA) and Al Mawarid Manpower Co. on May 28, as well as the offerings of Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma) and First Milling Co. (First Mills) on June 6.   

Last year, 18 companies went public on the main market, namely, East Pipes Integrated Company for Industry, Scientific & Medical Equipment House Co., Elm Co., Al-Dawaa Medical Services Co., Al Masane Al Kobra Mining Co., Nahdi Medical Co., Saudi Home Loans Co., Retal Urban Development Co., Alamar Foods Co., Naqi Water Co., Arabian Drilling Co., Power and Utility Company for Jubail and Yanbu (MARAFIQ), Perfect Presentation for Commercial Services Co. (2P), Americana Restaurants International Plc (Americana Restaurants), Riyadh Cables Group Co., AlSaif Stores for Development & Investment Co. (Alsaif Gallery) and Saudi Aramco Base Oil Co. (Luberef) and Alinma Hospitality REIT Fund.

Company Highlights:

Lumi is a closed joint stock company. It started its business as a branch of a sole corporation in 2006 and is headquartered in Riyadh.

The company’s core activities consist of three business segments: Vehicle lease; car rental; and sale of used vehicles released from its operations of the above two business segments.

Seera owns 100% of the company's pre-IPO shares.

Since 2016, Lumi’s fleet size has increased from 3,603 vehicles to 24,730 vehicles as of April 30, 2023.

The company provides its services in the Central, Western, Eastern, Northern and Southern Regions through 33 branches for car rental, three vehicle maintenance centers, in addition to mobile workshops and third-party vendors, digital channels and a used vehicles sales showroom.

Lumi’s automobiles account for 78%, commercial receivables make up 12%, and property and equipment represent 5% of the company’s total assets as of Sept. 30, 2022.

The total number of employees reached 771, of whom Saudis account for 269. The Saudization rate stands at 35% at Lumi.