Saudi Lumi Rent A Car appoints two banks to manage its initial ‎offering – Reuters ‎

Two sources told Reuters that the Saudi Lumi car rental company has appointed Banque Saudi Fransi Capital and EFG Hermes to manage the sale of 30 percent of its shares in a planned initial public offering.

Seera, the largest travel and tourism company in the Kingdom, intends to offer its subsidiary Lumi on the “Tadawul” and obtained the approval of the Capital Market Authority for the initial public offering last week.

A source, who asked not to be named because the matter is not public, said that the Riyadh-based Lumi company has appointed Saudi Fransi Capital as a financial advisor and joint bookrunner with the Hermes Group.

Lumi owns a fleet of more than 19,000 vehicles, according to information posted on its website. The company announced in September that it had opened a showroom in Riyadh to sell its used cars to consumers. She said that she plans to open car showrooms in Jeddah and Dammam in the coming months

Saudi Arabia is actively pressing international companies to base themselves in the kingdom while it works to establish a tourism industry, which is expected to stimulate demand for car rentals.

Glasgow Research and Consulting said in a report in January that the size of the car rental market in the country is expected to grow to 9.8 billion riyals ($2.6 billion) by 2027, at a compound annual growth rate of 8.6 percent.

The Middle East was a bright spot in terms of initial public offerings in 2022, and this matter continued this year with the offering of a stake in the Omani Abraaj Energy Services Company, as well as the initial offering of the UAE’s ADNOC Gas.

Dealogic data showed that companies from the Middle East raised $21.9 billion through initial offerings in 2022, equivalent to more than half of the total funds raised by the EMEA region.