Robert Vydra, Partner and Head of Equity Capital Markets at STAT, led the firm’s legal team advising Lumi Rental Company on its SAR 1.089 billion initial public offering on the Main Market of Saudi Exchange. STAT acted as legal adviser to the issuer. The company’s shares commenced trading on 25 September 2023.

The IPO comprised 16.5 million existing shares at SAR 66 per share, representing 30 per cent. of Lumi’s share capital. The shares were offered by Seera Group Holding, Lumi’s listed parent. The offering value was shareholder sale proceeds, rather than new equity raised by Lumi.

Lumi operates a vehicle rental and leasing business, together with sales of used vehicles from its fleet. The subsidiary’s listing formed part of a demerger approved by Seera’s shareholders, with Seera retaining a majority shareholding.

Saudi IPO experience in vehicle rental and leasing

In addition to his work on Lumi Rental’s IPO, Robert Vydra previously led STAT’s issuer-side team on Theeb Rent a Car Company’s SAR 516 million Main Market IPO. His broader automotive-sector M&A experience includes advising Saudi Automotive Services Company (SASCO) on its acquisition of Zaiti Petroleum Services Company, a petrol-station business.

A subsidiary IPO requires a clear account of the continuing parent relationship, shared services, related-party arrangements and the responsibilities of the subsidiary’s board and management. For a fleet-based business, that group-level picture must also sit alongside a coherent explanation of rental, leasing and vehicle-disposal activities.

About the lead partner

Robert Vydra is Partner and Head of Equity Capital Markets at STAT in Riyadh. He has advised on Saudi capital markets since 2007, with a practice covering issuer-side IPOs, prospectus disclosure, transaction structuring and continuing obligations.

Planning a subsidiary IPO or listed-group carve-out?

To discuss the parent-subsidiary relationship, offering structure, governance or prospectus disclosure, contact Robert Vydra.
rvydra@statlawksa.com | +966 55 001 5326