Saudi Arabia’s Lumi Rental Co. surged as much as 30% on trading debut after a 1.09 billion riyal ($290 million) initial public offering, showing demand for listings remains resilient after a slow first half of the year.
Shares in the car rental firm opened at 72.6 riyals on Monday up from the offer price of 66 riyals per share. Lumi drew over $27 billion in bids from institutional and retail investors during its IPO, with the portion reserved for funds almost 95 times oversubscribed. The stock rose by the maximum allowed 30% to 85.8 riyals apiece.
The strong debut is a positive sign for other companies in the queue to go public. Oil driller ADES Holding Co. priced its $1.2 billion IPO at the top of the range last week after investors piled in with $76.5 billion of orders. Cargo firm SAL Saudi Logistics Services Co. opened books for its IPO of as much as $678 million on Monday.
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