Lumi ‘leading car rental player’ in less than 10 years: Chairman

Eng. Mohammed Bin Saleh Al-Khalil, Chairman of Lumi Rental Company

Lumi Car Rental Company, which operates in car rental and leasing in Saudi Arabia, announced today its intention to proceed with an initial public offering of its ordinary shares on the Saudi Exchange (Tadawul). The company will offer 16.5 million shares, or 30% of capital, after receiving the approval of the Capital Market Authority (CMA) for the offering on March 29, 2023.
 

In a statement to Argaam, Lumi said the offer price range will be announced on August 30, 2023, and the final offer price for the Offer Shares will be announced on Sept. 7, following the institutional book-building process. The selling shareholder, Seera Group Holding, will receive the offering net proceeds.
 

Lumi offers car leasing services to corporate and government sector clients, car rentals through a network of 35 airport and city branches across the Kingdom, along with other digital channels. Its activities also include used car sales.
 

Seera Group Holding (formerly known as Al Tayyar Travel Group) established Lumi in 2006 as a limited liability company to provide car rental services amongst a portfolio of travel companies. In 2016, the strategic plans for Lumi’s short-term rental business were reshaped and an expert management team was formed to deliver these plans, as part of the transformation program rolled out by Seera Group Holding to adopt a new approach focusing on enhancing shareholders’ equity in the long term.

Since 2016, Lumi’s fleet size has increased from 3,603 vehicles to 24,730 vehicles as of April 30, 2023. The total number of employees reached 771 across the Kingdom as of Sept. 30, 2023.
 

Engineer Mohammed Bin Saleh Al-Khalil, Chairman of Lumi, said: “We are very proud of our journey of success, in which Lumi has turned into a market leading player in less than 10 years. The initial public offering is a very important stage in our history and embodies our effort, and support of the management team, board members and shareholders. The mobility sector currently witnesses great and accelerating growth, which marks an exciting time to invite investors to share in our onward journey of success.”

Azfar Shakeel, CEO of Lumi, said: “We are delighted to announce our intention to list Lumi’s shares on the Saudi Exchange (Tadawul). Lumi is a leading market player in the mobility sector and one of the fast-growing companies in the Saudi market, which sees accelerating expansion. We adopt a dynamic and holistic business model, and provide our services through one of the largest active fleets in the Kingdom. Our services include long-term car rentals, short-term car rentals, and used car sales. Lumi caters to a wide client base, with the highest level of customer service delivered through an omnichannel platform. Driven by a seasoned leadership team and a diverse and committed workforce, we are well-positioned to continue to build on our robust financial profile, in pursuit of dynamic growth and shareholder returns.”