Lumi IPO 11.5x covered, 4 shares allocated per subscriber

Logo of Lumi Rental Co.

Lumi Rental Co. announced the results of its initial public offering (IPO) today, Sept. 14, following the close of retail offering in preparation for listing on the Saudi Exchange (Tadawul).

The retail offering, which took place on Sept. 12 (one day only), witnessed 124,900 investors subscribing at a final offer price of SAR 66 per share, according to a statement to Tadawul.

The individual subscription was 11.5 times oversubscribed, with a total demand of about SAR 1.25 billion. The number of shares allocated to retail investors reached 1.65 million, representing 10% of the total IPO shares.

Individual investors will receive a minimum of four shares each, while the remaining shares will be allocated on a pro-rata basis based on the size of each individual investor’s request compared to the total remaining subscribed shares, with an average allocation factor of 0.1865%, the statement added.

Based on the outcome of the retail subscription, the shares allocated to institutional investors will be scaled back to 14.85 million, or 90% of the total offered shares.

Lumi floated 16.5 million shares, or 30% of its SAR 550 million capital, divided into 55 million shares, on Tadawul. Seera Holding Group, which currently owns 100% of Lumi, sold the shares, according to Argaam's data.

The institutional offering closed last week. It was 94.5 times covered. The total value of orders during the book-building process reached nearly SAR 102.9 billion.

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