Theeb Rent-a-Car to list 30% of shares in IPO this month

RIYADH: Theeb Rent-a-Car, a Riyadh-based car rental company, plans to float 30 percent of its share capital in an initial public offering (IPO) later this month.

The company issued an IPO prospectus last month to the Saudi Stock Exchange (Tadawul), in which it outlined the many factors that enable it to compete with its current and potential competitors and the factors it sees for its future growth.

The Saudi Capital Market Authority (CMA) last October approved Theeb’s request to offer a 30 percent stake as part of its IPO, representing 12.90 million shares on Tadawul.

The company’s strategy is to continue seeking growth in the car rental services sector by opening new branches, whether at airports, inside cities, or in new mega projects in which the need for car rental is likely to increase.

According to Argaam, Theeb Rent a Car reported a net profit of SR41.9 million ($3.97 million) for the first nine months of 2020, an increase of 8 percent on the same period in 2019.

Short-term leasing accounted for 44.8 percent of revenue, followed by long-term leasing (30.2 percent) and used car sales (25 percent).

Offering daily, weekly and monthly rental services, it operates through 48 outlets across the Kingdom. With 264,131 customers as of March 2020 – a 3 percent year-on-year increase – Theeb has an 8.8 percent share of the short-term car leasing market. It competes with the likes of Al WAFAQ, with a 6.9 percent market share, followed by Budget Saudi (6.9 percent), Arabian Hala (4.6 percent), Key Car Rental (3.5 percent) and SEERA (3.2 percent).