- Shares in Saudi Arabia's Lumi surged by as much as 30% above their initial listing price following the auto rental company's successful initial public offering, which raised $290 million in capital. Lumi, a subsidiary of Saudi travel firm Seera (1810.SE), formerly known as Al Tayyar Travel Group, introduced 30% of its shares during the IPO. In early trading on the Riyadh stock exchange, Lumi's shares reached a high of 85.8 riyals ($22.87) after commencing at 72.6 riyals. The IPO price of 66 riyals was set at the upper end of the expected price range.
- According to Lumi's IPO prospectus, the company ranked as the third-largest operator in Saudi Arabia, capturing approximately 7% of the market share based on its fleet size in 2021. Research from Glasgow Research & Consulting suggests that the Saudi car rental market is poised to grow at a compound annual growth rate of 8.6% through 2027, reaching a market size of 9.8 billion riyals.
Why it matters
A report from consultancy EY indicated that issuers from the Middle East and North Africa raised over $5 billion in the first half of the year, with a significant portion originating from Saudi Arabia and the United Arab Emirates.