Thursday, 24 August 2023

#Saudi auto rental firm Lumi to float 30% in IPO | Reuters

Saudi auto rental firm Lumi to float 30% in IPO | Reuters

Saudi Arabia's Lumi, one of the largest auto rental firms in the kingdom, on Thursday announced plans to proceed with an initial public offering on the Saudi Exchange.

Riyadh-based Lumi said it expects to issue 16.5 million existing shares, resulting in a free float of 30%.

Sources told Reuters in April that Lumi had hired Saudi Fransi Capital (1050.SE) as financial advisor and bookrunner and EFG Hermes (HRHO.CA) as bookrunner to arrange the sale of 30% of its shares.

Lumi confirmed those appointments and said Riyad Bank, Banque Saudi Fransi and Saudi National Bank have been appointed as receiving banks.

The share sale is set to be a litmus test for the Gulf IPO market after a slow summer period.

Issuers from the Middle East and North Africa raised more than $5 billion in the first half of this year, consultancy EY said in a report earlier this month, with the bulk coming from Saudi Arabia and the United Arab Emirates.

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