Lumi debuts on Tadawul today

Logo of Lumi Rental Co.

Lumi Rental Co. starts trading on the Saudi Exchange (Tadawul) today, Sept. 25, with the symbol 4262 and ISIN Code SA15SH122J13, at SAR 66 a share.

The stock will have daily and static price fluctuation limits of ±30% and ±10%, respectively. These fluctuation limits will apply during the first three days of listing. From the fourth trading day onwards, the daily price fluctuation limits will revert to ±10% and the static price fluctuation limit will no longer apply.

Lumi is the fifth company to debut on Tadawul this year, after the listing of Al Mawarid Manpower Co.  on June 19, and Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma) on June 20, Morabaha Marina Financing Co. (MMFC) on June 21 and First Milling Co. on June 22, besides the listing of Alinma Hospitality REIT Fund.

Last year, the Main Market witnessed 17 IPOs, namely, East Pipes Integrated Company for Industry, Scientific & Medical Equipment House Co., Elm Co., Al-Dawaa Medical Services Co., Al Masane Al Kobra Mining Co., Nahdi Medical Co., Saudi Home Loans Co., Retal Urban Development Co., Alamar Foods Co., Naqi Water Co., Arabian Drilling Co., Power and Utility Company for Jubail and Yanbu (MARAFIQ), Perfect Presentation for Commercial Services Co. (2P), Americana Restaurants International Plc (Americana Restaurants), Riyadh Cables Group Co., AlSaif Stores for Development & Investment Co.'s (Alsaif Gallery) and Saudi Aramco Base Oil Co. (Luberef).

Lumi will bring the total number of Tadawul-listed companies to 212, excluding 18 REITs.

The company offered 16.5 million shares, or 30% of its capital, at SAR 66 per share. Out of the offered shares, 90% were allocated to participating parties and 10% to retail investors.

The retail tranche was 11.5x covered, while the tranche of participating parties was 94.5x subscribed.

A total of 124,900 retail investors submitted applications for shares worth about SAR 1.25 billion.

Each retail investor received a minimum of four shares, while the remaining shares will be allocated pro rata, based on the demand size of every subscriber to total shares. The allotment ratio amounted to 0.1865%.

Company’s Profile:

Riyadh-based Lumi is a Saudi closed joint stock company, which started its operations as a branch of a sole proprietorship in 2006.

It operates via three key business segments: Car rental, car leasing, and the sale of cars used in the former two segments.

Seera Holding Group held 100% stake of the company's pre-IPO shares.

Since 2016, the company has witnessed a growth in its fleet size from 3,603 vehicles by the end of 2015 to 24,730 vehicles as of April 30, 2023.

The company offers its services in the Central Region, Western Region, Eastern Region, Northern Region and Southern Region through 33 car rental branches and three vehicle maintenance centers, in addition to mobile workshops, external suppliers, digital channels and one used car showroom.

Lumi’s total assets consist of vehicles (accounting for 78%), commercial receivables (12%), and property and equipment accounting (5%) as of Sept. 30, 2022.

The company employs 771 people, of whom 269 are Saudi nationals, with a localization rate of 35%.