Theeb Rent a Car shares debut on Tadawul today

Logo of Theeb Rent a Car

The Saudi Stock Exchange (Tadawul) announced that the listing and trading of Theeb Rent a Car Co.’s shares starts today, March 29, 2021, with the symbol 4261 in the transportation sector, with ± 30% daily price fluctuation limits and ± 10% static price fluctuation limits.

The above fluctuation limits will be applied during the first three days of listing, and the daily price fluctuation limits will revert to ± 10% from the fourth trading day onwards, with the static price fluctuation limits no longer applying.

Theeb is the second IPO in the main market since the implementation of the fluctuation limits on Nov. 8, 2020, and following the IPO of Alkhorayef Water and Power Technologies Co. (AWPT) on March 1, 2021.

Three companies were listed on TASI in 2020, which included Dr. Sulaiman Al Habib Medical Services Group (March), Amlak International for Real Estate Finance Co. (July) and BinDawood Holding Co. (October).

Theeb floated 12.9 million shares, representing 30% of its total shares in a public offering at SAR 40 per share of which 90% were allocated to institutional investors. The offering was 6,010% oversubscribed.

As many as 1.29 million shares, or 10% of the offering, were allocated to the retail investors. The retail offering was 3,385.4% oversubscribed, raising funds amounting to SAR 1.75 billion from 414,600 subscribers, according to data compiled by Argaam.

Company Info:

In September 2010, Theeb Rent a Car was established as a closed joint-stock company in Riyadh. Its current capital is SAR 430 million.

The company started its activities as part of the operational activities of Theeb Establishment for Contracting, owned by Hamoud Abdullah Al-Theeb, in 1991.

The current activities of the company are:

Short-term rental and other related services.

Long-term rental and other related services, in addition to providing customized solutions to clients.

Sale of used company-owned vehicles that were used through the above business sectors operations.

By the end of the first nine months of 2020, the company’s revenue generated from car rental and lease services accounted for 37.9% and 37.7% of total revenue, respectively. Revenue from the sale of used vehicles represented 24.4% of total revenue in the same period.

The following table indicates the distribution of the company's revenue by activity (percentage of total) until the end of the first nine months of 2020:

Theeb has 48 car rental branches, 44 of which are established on leased land and property, with initial terms of lease contracts ranging between five and 10 years. The company also has 10 maintenance centers and two car sales branches. The following are the branch details:

According to the prospectus, the company intends to open three new short-term rental branches in Riyadh in addition to two other branches in Jizan and Dammam. Theeb Rent a Car also plans to renew two short-term car rental branches in Riyadh, five branches in Jeddah and a branch each in Dammam, Jubail, Al-Baha, Al Qassim and Najran.

The number of the company's clients by the end of March 31, 2020, reached about 264,100, an increase of 3% compared to 2019. The table below shows the development of retail clients in the company since 2015:

Theeb’s fleet is composed of rental, lease and service vehicles.

- Car Rental Fleet: As of March 31, 2020, the company operated a peak rental fleet of about 10,800 vehicles.

- Vehicle Lease Fleet: Theeb purchases vehicles upon the customers’ demand. The company’s lease fleet reached 8,541 cars as of March 31, 2020, distributed over more than 350 customers and varies from passenger vehicles to commercial vehicles and light trucks.

- Service Fleet: It represented 2.6% of the company’s total fleet as of March 31, 2020. It is used for roadside assistance, washing and mobile maintenance, towing and for employee usage. At the end of the lifecycle in rental or lease, some selected cars are allocated for service use or as an employee benefit as per the company’s employee car policy.

During the three-month period ended March 31, 2020, the company took delivery of approximately 1,435 vehicles and operated an average fleet of 19,193 vehicles.

Hamoud Abdullah AlTheeb and Mohammed Ahmed Abdullah Al-Theeb are the largest shareholders following the IPO, with each holding 23% stake.

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