21.2 C
Dubai
Monday, February 26, 2024
spot_img

Saudi car rental firm Lumi soars 30% in Riyadh IPO

Saudi car rental firm Lumi saw its shares surge by up to 30% above their listing price following a successful initial public offering (IPO) that raised $290 million. Lumi, a subsidiary of Saudi travel company Seera (formerly known as Al Tayyar Travel Group), listed 30% of its shares in the IPO.

Its shares opened at 72.6 riyals and reached as high as 85.8 riyals in early trading, surpassing its IPO price of 66 riyals, which was at the top of its indicative range.

The company’s IPO prospectus noted that Lumi is the third-largest operator in Saudi Arabia, with a market share of approximately 7% based on its fleet size in 2021. The Saudi car rental market is expected to experience a compound annual growth rate of 8.6% until 2027, reaching a market size of 9.8 billion riyals, according to research by Glasgow Research & Consulting.

Lumi’s listing is part of a resurgence in IPO activity in the Gulf region after a relatively slow start to 2023. Issuers in the Middle East and North Africa raised over $5 billion in the first half of the year, with the majority coming from Saudi Arabia and the United Arab Emirates, although this figure was 60% lower than the same period in 2022, which was a particularly strong year for Gulf IPOs.

Next Article

Related Articles

Abu Dhabi-Backed RedBird IMI Secures $1.45 Billion Deal for UK’s All3Media

Abu Dhabi-Backed RedBird IMI Secures Powerhouse $1.45 Billion Deal for UK's All3Media RedBird IMI, spearheaded by Jeff Zucker, the former CNN executive, has clinched a...

Ramadan Delight: Retailer Slashes Prices on 10,000 Items, Unleashes Dh5,000 Gift Cards for UAE Shoppers

Ramadan Joy: Retailer Slashes Prices on 10,000 Items, Unveils Dh5,000 Gift Cards, These essential products, comprising approximately 80 percent of the total offerings, span across...

Quit Smoking for a Powerful Reduction in Insurance Premiums , Break Free with Mind Your Money

Quit smoking related illnesses contribute significantly to healthcare expenditures. In the United Arab Emirates (UAE), where a forward-thinking approach to health and wellness is gaining...

GCC Countries Poised to Supercharge Region’s GDP by $2.5 Trillion in 10 Years

GCC Countries Unleashing Potential to Skyrocket Region's GDP by $2.5 Trillion in a Decade A recent study has unveiled the potential for accelerated economic growth...

UAE Gold Prices Surge on the First Trading Day of the Week

UAE Gold Prices Soar on First Trading Day of the Week Gold prices in the UAE experienced a notable surge on the initial trading day...

Latest Articles