Saudi Arabia’s Lumi, one of the largest auto rental firms in the kingdom, said on Wednesday that it could raise up to 1.089 billion riyals ($290 million) after a price range was set for its initial public offering.
Riyadh-based Lumi said in a statement the price range was set between 62 riyals to 66 riyals per share, giving the company a valuation of as much as 3.63 billion riyals.
The institutional book-building period began on Wednesday and will end on Sept. 5, and the final offer price is expected to be announced on Sept. 7.
The share sale is set to be a litmus test for the Gulf IPO market after a slow summer.
Lumi is a wholly-owned unit of Seera, a Saudi travel company formerly known as Al Tayyar Travel Group.
The auto rental firm ranked itself as the third-biggest operator in the country with a market share of about 7%, based on its fleet size in 2021, according to its IPO prospectus.
Sources told Reuters in April that Lumi had hired Saudi Fransi Capital as financial advisor and bookrunner and EFG Hermes as bookrunner to arrange the sale of 30% of its shares.
Reuters