EFG Hermes, Saudi Fransi Capital lead sale of 21% stake in Theeb Rent a Car

Under the sale transaction, 9.03mln shares, accounting for 21% of Theeb Rent a Car’s outstanding shares, were offered for sale to institutional investors

  
Traders work at the Egyptian stock exchange in Cairo, Egypt February 13, 2018.

Traders work at the Egyptian stock exchange in Cairo, Egypt February 13, 2018.

REUTERS/Amr Abdallah Dalsh

ArabFinance: Egyptian Financial Group Hermes Holding (EFG Hermes) (HRHO) and Saudi Fransi Capital have acted as joint bookrunners and brokers to Growth Opportunities Company for Trading, according to a press release.

The two companies have been jointly successful in concluding the sale of Growth Opportunities’ entire stake in Theeb Rent a Car, via an accelerated equity offering.

Under the sale transaction, 9.03 million shares, accounting for 21% of Theeb Rent a Car’s outstanding shares, were offered for sale to institutional investors.

The transaction was carried out through 19 block trades at a total value of SAR 478.59 million, equivalent to a price of SAR 53 per share.

Following the completion of the sale, Theeb’s free-float shares as a percentage of outstanding shares rose to 63.45%, with the remaining 36.55% being held by other substantial shareholders.

CEO of SFC Salam AlKhunaizi said: “The deal showcases the viability of accelerated bookbuildings as a reliable exit mechanism for institutional investors wishing to re-allocate wealth in today’s evolving equity capital markets.”

For his part, Mohamed Fahmi, EFG Hermes’ Co-Head of Investment Banking, commented: “We’re honored to continue our journey with Theeb Rent a Car and its shareholders, after having assisted the company list via IPO earlier in 2021. This transaction highlights not only the strengths of the company, but of the Saudi equity capital markets as well.”

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