Lumi Rental Company (“Lumi” or the “Company”) will offer 16,500,000 shares (the “Offer
Shares”), representing 30% of its issued share capital (the “IPO” or the “Offering”).
● The net proceeds of the Offering will be received by the Selling Shareholder, Seera Group Holding.
(formerly known as Al Tayyar Travel Group).
● Lumi’s shares are intended to be listed on the Saudi Exchange’s Main Market following the
successful completion of the Offering and listing formalities with both the CMA and the Saudi.
Exchange.
● Saudi Fransi Capital has been appointed as Financial Advisor, Lead Manager, Bookrunner and
Underwriter. EFG Hermes has been appointed as Bookrunner. Riyad Bank, Banque Saudi Fransi
and Saudi National Bank have been appointed as Receiving Agents.
● All the Offer Shares will be offered to the Participating Parties (as defined below).
● If there is sufficient demand from Individual Investors (as defined below), and the Participating
Parties subscribe to all the Offer Shares allocated to them, the Financial Advisor, in coordination
with the Company, has the right to reduce the number of Shares allocated to the Participating
Parties to 90% of the Offer Shares, and to offer 10% of the Offer Shares to Individual Investors.
Riyadh, Saudi Arabia, 24 August 2023: Lumi, one of the leading car rental and leasing companies in the
Kingdom of Saudi Arabia (the “Kingdom”), today announces its intention to proceed with an initial public
offering of its ordinary shares on the Saudi Exchange’s Main Market. On 29 March 2023G, the CMA
approved the Company’s application for the offering of 16,500,000 Offer Shares, representing 30% of the
Company’s total issued share capital. The offer price range for the Offer Shares will be announced on 30
August 2023G, and the final offer price for the Offer Shares will be announced on 7 September 2023G,
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following the institutional bookbuilding process. The net proceeds of the Offering will be received by the
Selling Shareholder, Seera Group Holding (formerly known as Al Tayyar Travel Group).
The planned IPO marks an important milestone in Lumi’s growth journey, during which time it has become
one of the leading car rental companies in the Kingdom. Lumi is focused on building a strong pipeline of
future revenue and asset growth, achieving greater scale and market share, and further growing its
operations and profitability.
Engineer Mohammed Bin Saleh Al-Khalil, Chairman of Lumi, commented: “It gives us great pleasure
to announce the start of our IPO process, another remarkable milestone for Lumi. We are proud to have
grown from a breakeven business to a billion-riyal market leading player in less than a decade. This has
been made possible by the dedication and support of our management team, our Board members and
shareholders. The IPO provides an opportunity for investors to participate in a sector that is benefitting from
powerful macroeconomic and structural tailwinds, and is positioned for significant growth. With our own
growth accelerating, this is an exciting time to invite investors to share in our onward journey of success.”
Syed Azfar Shakeel, Chief Executive Officer of Lumi, said: “As one of the leading players positioned for
growth in the land mobility sector, we are delighted to have announced our intention to float on the Saudi
Exchange. Lumi is a fast-growing local player operating in a large and expanding market. With a dynamic
and holistic business model, our operations are enabled by one of the largest active fleets in the Kingdom.
Our service offering across rentals, leasing and used car sales caters to a wide client base, with industry-
leading customer service delivered through an omnichannel platform. Driven by a seasoned leadership
team and a diverse and committed workforce, we are ideally positioned to continue to build on our robust
financial profile, in pursuit of dynamic growth and shareholder returns.”
Company Overview and Business Activities
● Lumi is one of the leading car rental companies in the Kingdom with a unique and diverse offering,
including lease services to Corporate and Government sector clients, car rentals via digital channels
and a network of 35 airport and city branches across the Kingdom, and used car sales.
● Lumi was established by Seera Group Holding in 2006G as a sole proprietorship to provide car rental
services amongst a portfolio of travel companies. In 2016G, as part of the transformation programme
to steer Seera Group Holding in a new, more focused direction, strategic plans for Lumi were
reconfigured and an expert management team was mobilised.
● Since 2016G, the Company has achieved a high rate of growth, increasing from a fleet size of 3,603
vehicles to 24,730 vehicles as of 30 April 2023G.
● As of 30 September 2022G, the Company had a total of 771 employees across the Kingdom.
● The Company’s business consists of three reportable segments:
1. Vehicle Lease: long-term lease of commercial and non-commercial vehicles to corporate
and Government sector entities. Lease services include fleet procurement, maintenance,
insurance, vehicle replacement, and roadside assistance.
2. Car Rental: car rental and related services to retail customers and corporate clients via 35
airport and city branches across the Kingdom, as well as through digital channels including
website, mobile application, call centre and WhatsApp. Rental services include car rentals,
motorcycle rentals, chauffeur services and extra services (flexible drop-off, extra insurance,
cross-border permits, optional child seats).
3. Used Vehicles Sales: sales of used vehicles from the Company’s own lease and rental
fleet through a bidding process or a car showroom. Lumi does not sell any third-party used
vehicles.
Strategy for Growth:
The following three pillars are the basis of Lumi’s growth strategy:
1. Building a pipeline of future revenue and asset growth through vehicle lease contracts with corporate and Government clients
● Lumi will continue to expand the fleet size offered to its clients by consistently providing
service excellence and pricing competitiveness.
● These capabilities will be further leveraged to acquire new corporate clients as the Saudi
Vision 2030 agenda creates new vehicle lease demand. Lumi aims to engage in bidding
for Government lease contracts, and has already done so successfully.
2. Achieving scale, adding to growth of operations and profitability as a car rental business
● Lumi will build on its optimal branch network through openings in existing and new cities
that are gaining prominence as travel destinations.
● Lumi is adopting an omnichannel approach to capture customers through integrated online and offline channels.
● Lumi will continue to offer competitive rental rates across a wide range of fleet options,
retain customers through a loyalty programme and increase the corporate rental client
base.
● As the Kingdom continues to organise large tourism events, Lumi plans to provide end-to-end logistics and fleet management support to facilitate land transportation needs for large-scale events.
3. Fleet disposal at maximised purchase price recovery
● Lumi has opened used vehicle sales showrooms in Riyadh and Jeddah and will open
another in Dammam to further maximise the purchase price recovery of its vehicles.
● Lumi aims to digitise its existing closed bidding process for used vehicles to enhance the
buyer experience.
Strengths and Competitive Advantages
A number of factors enable the Company to pursue and achieve sustainable and profitable growth, while
competing successfully with its peer group. These include:
1. Omnichannel service platform Lumi offers an omnichannel service through integrated online (mobile application, website, and WhatsApp) and offline (branch, call centre) channels for the ease of its customers. This gives a choice to the customer to reserve a vehicle or communicate with the Company through their preferred channels.
2. Efficient fleet procurement and strong relationships with suppliers Lumi has been buying a sizeable number of vehicles every year for the past several years, resulting in strong relationships with car dealers. This enables it to obtain attractive vehicle prices that are supportive of margins, and priority delivery for its fleet.
3. Maintenance infrastructure Lumi’s maintenance infrastructure includes: three in-house workshops equipped with the required tools and equipment to cater to all vehicle maintenance requirements; mobile workshops to cater to preventive maintenance remotely; contracts with third-party service providers covering more than 650 maintenance
points across the Kingdom; and 24/7 roadside assistance for car rental customers and vehicle lease clients.
