Saudi car rental businesses want to offer on the stock exchange with the restoration of tourism

Two car rentals are considering selling new shares in Riyadh, in an effort to take advantage of the Kingdom efforts to attract more tourists. ‘Cherry Rent-a-Car’ works with the financial group Hermes and ‘BSF Capital’ a possible preliminary public offer, according to people who are familiar with the case, who asked not to disclose their identity for the privacy of information. Some of them said that the company also works “key car rental” on a possible listing. Final decisions have not yet been made about the timing, size or evaluation of one of the two transactions. A “ShRI” spokeswoman said the company had not yet obtained the organizational approval of public subscription, while the financial group Hermes and BSF refused to comment. It was not possible to achieve the representatives of the “key” remark. Saudi Arabia’s efforts to improve tourism The tourism is an essential pillar with the plan of Crown Prince Mohammed Bin Salman to reduce the dependence on the economy of oil. The government said it intended to spend almost a trillion dollars on the industry to achieve its goal of offering 150 million tourists annually by 2030. Car rental businesses are expected to benefit from this growing demand. The “ShRI” and “Key” businesses compete with companies such as “Lumi Leasing”, which raised $ 290 million from its inserts in 2023, and the share price has risen by more than 10% since the trading. Bloomberg reported that “Yelo”, another rental business, also offers its public subscription shares. These subscriptions would deepen the surge of the initial proposals in Saudi Arabia, as businesses in various sectors have collected about $ 4 billion over the past 12 months of healthcare to food and beverages. Another 2025 -year -old seems to be with subscriptions, such as Al Arabiya Agricultural and Industrial Investment (Production) and Technology Services Company “Ijada” to offer shares.