Seera considers listing car rental subsidiary on Tadawul

Seera Group Holding is considering the initial public offering (IPO) of its fully owned subsidiary, Lumi Rental Co., on the Saudi Exchange (Tadawul), the company said in a bourse statement.

The subsidiary is headquartered in Riyadh and is active in providing car rental services.

Seera and Lumi Rental are currently conducting detailed feasibility studies to cover all organizational, financial, technical and legal aspects to determine the IPO prospects.

This process will be followed by further financial and legal due diligence reviews for preparation of the required documentation and disclosures, in accordance with the applicable rules and regulations, the statement added.

The IPO, however, is subject to satisfying the necessary regulatory procedures and requirements, including without limitation obtaining approvals from the Capital Market Authority (CMA) on the registration and offer of the company’s shares and the prospectus relating to the potential offering.

Approval is also required from Tadawul on listing the company’s shares, in addition to obtaining all required official approvals in connection with the offering.

Any material developments will be announced in due course, the company noted.