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The initial public offering (IPO) of Saudi Arabia’s Lumi, one of the largest vehicle leasing companies in the kingdom, has been oversubscribed more than 10 times, reflecting a strong appetite for flotations.
At least 124,888 investors subscribed to the retail tranche of the offering, generating an oversubscription level of 11.5 times, with total retail demand of approximately SAR1.25 billion ($333 million), according to a bourse filing on the Saudi Stock Exchange (Tadawul) on Thursday.
The retail tranche comprised 1,650,000 shares, representing 10% of the total offering.
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, the disclosure said.
The retail subscription period for individual investors took place on September 12.
Given the results of the retail subscription, the shares allocated to institutional investors will be scaled back to 14,850,000, representing 90% of total offer shares.
The company had earlier set the price for its shares at 66 riyals, setting the company’s valuation at SAR 3.63 billion.
(Writing by Cleofe Maceda; editing by Seban Scaria)
