Another week, another premium-priced stock market initial public offering (IPO), though this time it was on the Riyadh stock exchange.
Lumi, a spin-out of travel company Seera, is a car rental company operating in Saudi Arabia and it began trading in Riyadh at a 30% premium – trading up to 85.8 riyals after pricing its IPO at 66 riyals.
According to reports, the IPO was 95 times oversubscribed albeit with the Saudi company raising the equivalent of $290 million (just over a billion riyals) in the offering.
The well-supported raise saw over 100 billion riyals of offers through last week’s institutional book-build.