Saudi Arabian auto rental firm Lumi has hired Saudi Fransi Capital and EFG Hermes to arrange the sale of 30% of its shares in a planned initial public offering (IPO),according to Reuters.
The owner of Lumi, Seera won approval for the sale from Saudi Arabia’s Capital Market Authority (CMA) last week. The company, according to regulation, has six months to launch their public share sale.
The auto rental company has a fleet of more than 19,000 vehicles, according to its website.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 53% last year to US$46.36 million, according to Seera’s financial results.
The country’s car rental market is expected to surge to US$2.6 billion by 2027 growing at a compound annual growth rate of 8.6%, according to a report by Glasgow Research & Consulting.
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