Theeb IPO likely to hit market in early 2021: Investcorp executive
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The initial public offering (IPO) of Theeb Rent-a-Car is expected early next year, Bloomberg reported, citing Walid Majdalani, Investcorp Holding’s head of private equity for the Middle East and North Africa.
Theeb’s business has rebounded fairly quickly after travel restrictions in response to the pandemic earlier in the year pushed international rental companies such as Hertz Global Holdings Inc. into bankruptcy, Majdalani noted.
Theeb is the fourth Saudi company that Investcorp is helping list on the Saudi Stock Exchange (Tadawul) after Lazurde Company for Jewelry, Leejam Sports Co., and BinDawood Holding Co.
Elsewhere, Investcorp is looking to do more in the region across the healthcare, transport, logistics and industrial sectors, Majdalani said, adding it is facing less competition from other private equity investors and business owners are a lot more realistic about valuations.
In September, the Capital Market Authority (CMA) approved the listing of a 30% stake, or 12.9 million shares, of Theeb.
Theeb Car Rental, which commenced operations in 1991, has 44 branches across the Kingdom with a fleet size of more than 19,000 vehicles.
In 2013, Investcorp’s Gulf Opportunities Fund acquired a 30% stake in the Saudi car rental company.