Saudi Car Rental Firm Theeb Hires Fransi Capital for IPO

Saudi Arabia’s Theeb Rent-a-Car hired Saudi Fransi Capital to advise on a potential initial public offering, according to people with knowledge of the matter.

The share sale and listing on the local stock exchange would allow Bahrain-based alternative investment firm Investcorp to reduce its stake in the care hire business, the people said, asking not to be identified because the information is private.

The IPO could happen next year, depending on how quickly the company recovers from the impact of the coronavirus outbreak, the people said. Final decisions haven’t been made and the company may decide to delay the share sale, they said.

Saudi Arabian companies are taking the lead in new offerings at a time when IPOs across the region have been scarce. Investcorp, which acquired a stake in Theeb in 2013, is also preparing to sell shares in grocery business BinDawood Holding, in what would be the buyout firm’s third exit from Saudi Arabia via a share sale in five years.

A representative for Theeb confirmed the company is working on IPO without giving further details. A spokesman for Investcorp declined to comment, while a representative for Saudi Fransi Capital didn’t respond to requests for comment.

©2020 Bloomberg L.P.

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