Lumi Rental Company (“Lumi” or the “Company”), one of the leading car rental and leasing companies in the Kingdom of Saudi Arabia the (the “Kingdom”), today announces the offer price range and commencement of participating entities’ bidding and book-building for
its initial public offering (the “IPO” or the “Offering”) on the Main Market of the Saudi Exchange.
The Company’s approved red herring prospectus, which contains full details of the Offering, has been published on the Capital Market Authority (“CMA”) website on 24 August 2023G.
The price range for the Offering has been set between SAR 62 and SAR 66 per share (the “Price Range”), implying a total offering size of SAR 1,023 million to SAR 1,089 million. The Price Range for the Offering implies a market capitalization at listing of SAR 3,410 million to SAR 3,630 million. The institutional book-building period commences today, 30 August 2023G, and will end on 5 September 2023G. The Final Offer Price will be determined at the end of the institutional book-building period, and is expected to be announced on 7 September 2023G.
On 29 March 2023G, the CMA approved the Company’s application for an initial public offering of 16,500,000 shares (the “Offer Shares”), representing 30% of Lumi’s issued share capital. The net proceeds of the Offering will be received by the Selling Shareholder, Seera Group Holding (formerly known as Al Tayyar Travel Group).Company Overview
• 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.
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• 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.
• The Company’s business consists of three reportable segments:
o 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.
o 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).
o Used Vehicle Sales: sales of used vehicles from the Company’s own lease and rental fleet
through a bidding process or through its car showrooms in Riyadh and Jeddah (Lumi will
open an additional showroom in Dammam). Lumi does not sell any third-party used
vehicles.
Offering Details
Saudi Fransi Capital has been appointed by the Company as financial advisor (the “Financial Advisor”),
lead manager (the “Lead Manager”), and underwriter (the “Underwriter”). Lumi has appointed Saudi Fransi
Capital and EFG Hermes as joint bookrunners (the “Joint Bookrunners”).
The Offering, for which the required CMA and Saudi Exchange approvals have been obtained, will consist
of the following:
● The Offering will consist of 16,500,000 existing shares to be sold by Seera Group Holding, representing
30% of the Company’s issued share capital, and will be restricted to the following groups of investors:
o Tranche (A): Participating Parties (institutional investors) – Comprising the parties
entitled to participate in the book building process as specified under the Instructions for
Book-Building Process and Allocation Method in Initial Public Offerings, issued pursuant to
CMA Board Resolution No. 2-94-2016, dated 15 Shawwal 1437H (corresponding to 20 July
2016G), as amended by CMA Board Resolution No. 1-301-2022, dated 2 Rabi’ al-Awwal
1444H (corresponding to 28 September 2022G) (collectively the “Participating Parties”
and each a “Participating Party”). The number of Offer Shares to be provisionally
allocated to the Participating Parties (collectively, the “Participating Entities” and each a
“Participating Entity”) is 16,500,000 Offer Shares, representing 100% of the Offer Shares.
The final allocation will be made after the end of the Individual Investors’ subscription (as
defined in Tranche (B) below), using the discretionary allocation mechanism by the
Financial Advisor in coordination with the Company. As a result, some of the Participating
Entities may not be allocated any Offer Shares. The Financial Advisor shall have the right,
if there is sufficient demand by Individual Investors and in coordination with the Company,
to reduce the number of Offer Shares allocated to Participating Entities to 14,850,000 Offer
Shares, representing 90% of the Offer Shares.
o Tranche (B): Individual Investors – Comprising Saudi Arabian natural persons, including
any Saudi female divorcee or widow with minor children from a marriage to a non-Saudi
person who can subscribe for her own benefit or in the names of her minor children, on the
condition that she proves that she is a divorcee or widow and the mother of her minor Saudi
Arabian children, as well as any non-Saudi natural persons resident in the Kingdom or
GCC natural persons, in each case who have a bank account with a receiving agent and
the right to open an investment account with a capital market institution (collectively, the
“Individual Investors” and each an “Individual Investor”). A subscription for Offer Shares
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made by a person in the name of his divorced wife shall be deemed invalid and the
applicant shall be subject to the sanctions prescribed by law. If a duplicate subscription is
made, the second subscription will be considered void and only the first subscription will
be accepted. A maximum of 1,650,000 Offer Shares, representing 10% of the total Offer
Shares shall be allocated to individual investors. If the individual investors do not subscribe
in full to the Offer Shares allocated to them, the Financial Advisor may in coordination with
the Company reduce the number of Offer Shares allocated to Individual Investors in
proportion to the number of Offer Shares subscribed by them.
• Lumi shares will be listed on the Main Market of the Saudi Exchange following the completion of the Offering and listing formalities with both the CMA and the Saudi Exchange.
• The net proceeds of the Offering will be received by the Selling Shareholder, Seera Group Holding (formerly known as Al Tayyar Travel Group).
Offering Timetable
IPO Milestone Date
Price range announcement and book-building
commencement 30 August 2023G
Book-building closing 5 September 2023G
Announcement of Final Offer Price 7 September 2023G
Retail subscriptions open 12 September 2023G
Retail subscriptions close 12 September 2023G
Expected first day of trading
Trading of the Company’s
shares on the Main Market of
the Saudi Exchange is
expected to start after
completion of all of the
relevant legal requirements
and procedures. The trading
commencement date of the
Shares will be announced on
Tadawul’s website
(www.saudiexchange.sa).
The prospectus for the Offering can be found on the CMA website (www.cma.org.sa) and on the Company’s.
