Riyadh, Saudi Arabia — Lumi Rental Company said Friday that its retail offering, which took place for one day only on Sept. 12, saw 124,900Â investors subscribing at a final offer price of SAR 66 per share.
In a Tadawul statement, Lumi said 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 percent of the total IPO shares.
Argaam reported that 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 percent.
Based on the outcome of the retail subscription, the shares allocated to institutional investors will be scaled back to 14.85 million, or 90 percent of the total offered shares.
Lumi floated 16.5 million shares, or 30 percent of its SAR 550 million capital, divided into 55 million shares, on Tadawul. Seera Holding Group, which currently owns 100 percent of Lumi, sold the shares, according to Argaam.
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.