Riyal Motors plans to float 720,000 shares on Nomu

Logo of Riyal Investment and Development Co.

Saeed Al-Ghamdi, CEO of Riyal Investment and Development Co. (Riyal Motors), told Argaam that the company specializes in the operational leasing of cars to institutional and corporate clients across the Kingdom. 

He added that the firm owns and manages a fleet of nearly 3,500 cars of different models.  

Aldukheil Financial Group (AFG), the financial advisor for the initial public offering (IPO) of Riyal Motors on the Nomu-Parallel Market, announced that the offering will run from Oct. 1-5. 

Al-Ghamdi underscored the development of the company's business and fleet, as well as demand for its services.

Here is the full interview:

Q: Could you give us insight into the company and its business development?

A: The company started as a sole proprietorship, and it turned into a limited liability company in 2010, with SAR 2 million in capital and a fleet of 457 cars.

The firm continued to develop its business, fleet, and customer base. In 2012, it launched a unique service for maintaining its fleet through mobile maintenance trucks.

The number of mobile maintenance trucks increased to 30 due to the growing demand for the service. Meanwhile, the company currently has a fleet of approximately 3,500 cars.

Q: How about the car models and details of the company’s fleet?

A: Riyal Motors stands out for its unique fleet composition, with rough terrain cars accounting for 67% of the company's fleet to serve major oil and gas projects.

The company also prepares cars based on the customer’s requirements, such as installing supporting iron legs, tracking systems, cameras, and security systems, as well as coolers and freezers for small and medium-sized cars designated for transporting meals to remote locations.

In general, the company's fleet includes luxury cars for corporate executives, SUVs for projects, sedans, minibuses, and large buses, as well as large and medium-sized trucks, manufactured by major car manufacturers such as Toyota, Hyundai, Chevrolet, GMC, Ford, Nissan, and Isuzu.

Q: What is the company’s policy for serving and offering maintenance to customers?

A: Riyal Motors has great experience in providing distinguished services to customers, as it provides different types of cars based on customer needs. In addition, it delivers cars to customers at the agreed-upon time.

In addition, the firm has alternative cars in several areas to facilitate the service of delivering cars to customers if his car is broken down or crashed.

The company has built strong relationships with several customers and other firms operating in energy, as well as oil and gas exploration in remote areas. Riyal Motors provides these businesses with safety vehicles and cars supported by steel bars, tracking systems, cameras, security systems, and refrigerators for small and midsize trucks to transport food meals to remote areas.

The company has a well-trained administrative, marketing, and technical team qualified to provide the best customer service across the Kingdom. Since 2018, Riyal Motors has been certified to ISO 9001:2015 for internal and external quality management systems.

Q: How do you see demand levels for car rental services?

A: The car rental industry has seen growth on a continued increase in demand. We expect demand to grow, backed by various reasons, such as the post-pandemic economic recovery, the resumption of development plans in line with Vision 2030, and government initiatives to attract major global companies to the Kingdom. This will be directly reflected in raising demand levels in the sector.

The company will continue to enhance all business lines by providing the best customer service, reducing costs, and enhancing efficiency.

For More IPOs