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IPO Monitor | A New Saudi IPO is Here: Cherry Trading. Learn Details & How to Subscribe on Sahm
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Cherry Trading IPO Overview
Cherry Trading Company, a leading car leasing company in Saudi Arabia, is moving forward with its Initial Public Offering (IPO) on the Saudi Exchange's Main Market (Tadawul). The company announced its listing intentions on October 19, 2025, following regulatory approvals earlier this year.
Regulatory Milestones
The company secured Saudi Exchange approval for its listing on May 27, 2025, followed by Capital Market Authority (CMA) approval on June 25, 2025. The CMA approval covers both the registration of shares and the offering of 9 million ordinary shares, representing 30% of the company's total share capital. These are existing shares being sold by current shareholders.
Critical Timeline: Book-Building Begins Soon
The institutional investor phase officially launches on Sunday, October 26, 2025, marking a crucial milestone in the offering process. The book-building and participating parties subscription registration period will run for five days, from October 26 through October 30, 2025. During this phase, institutional investors will participate in determining the final offer price for the shares.
Following the institutional phase, retail investors will have their opportunity to subscribe during a two-day window scheduled for November 12-13, 2025.
Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO
IPO Summary
| Category | Details |
|---|---|
| Company Name | Cherry Trading Co. |
| Market | Main Market (TASI) |
| Core Activities | Car Rentals |
| Capital | SAR 300 Million |
| Total Shares | 30 Million |
| Par Value | SAR 10 per share |
| Issue Percentage | 30% of the Company’s share capital |
| Number of Offered Shares | 9 Million |
| Qualified Subscribers | Participating institutions & Retail investors |
| Total Number of Shares Offered to Retail Investors | 1.8 Million shares (20% of the offering size) |
| Minimum Number of Offer Shares to be Applied for by Individual Investors | 10 shares |
| Maximum Number of Offer Shares to be Applied for by Individual Investors | 250,000 shares |
| Minimum Number of Offer Shares to be Applied for by Institutional Investors | 100,000 shares |
| Maximum Number of Offer Shares to be Applied for by Institutional Investors | 1.5 Million shares |
About Cherry Trading:
Cherry Trading Company operates through three complementary business segments that address different aspects of the mobility and vehicle market in Saudi Arabia:
1. Long-Term Lease
The company's long-term leasing segment targets corporate clients, government entities, and medium to large enterprises with customized leasing solutions. This offering provides comprehensive fleet management services under flexible contract terms with fixed monthly payments. Clients receive an all-in-one solution that includes vehicle procurement, maintenance, insurance, replacement services, and regulatory compliance management. This model allows organizations to scale their vehicle fleets without capital expenditure while accessing advanced digital fleet management tools to optimize costs and operational efficiency.
2. Short-Term Rental
The short-term rental segment serves a diverse customer base including corporate clients, expatriates, tourists, and individual customers requiring daily, weekly, or monthly rental solutions. Customers can access the company's well-maintained fleet through multiple channels: physical branches, an online platform, and a mobile application. The digital reservation system and dedicated customer support services provide a seamless booking and rental management experience, positioning the company as a preferred provider for temporary mobility needs.
3. Sales of Motor Vehicles
The company exclusively sells pre-owned vehicles from its own fleet, creating a steady supply of high-quality used vehicles for the secondary market. Sales channels include direct showroom sales, online listings, and business-to-business transactions. The company employs a structured fleet disposal strategy supported by a data-driven pricing model that leverages market demand analytics, brand-specific depreciation trends, and vehicle condition assessments. This approach maximizes residual value while maintaining overall fleet quality and sustainability.
Investor Groups
The IPO consists of 9 million ordinary shares, representing 30% of the company's total share capital post-offering. The offering is divided into two tranches targeting distinct investor groups:
Tranche A: Participating Parties (Institutional Investors)
This tranche is designated for institutional investors eligible to participate in the book-building process as defined by CMA regulations. Qualifying participants include investment funds, Qualified Foreign Investors, GCC Corporate Investors, and certain other foreign investors under SWAP Agreements.
Initially, all 9 million Offer Shares (100% of the offering) are provisionally allocated to Participating Parties. The final allocation will be determined after the offering period concludes, with the Financial Advisors coordinating with the company using a discretionary allocation mechanism. This means some participating entities may receive no allocation.
However, the Financial Advisors retain the right to reduce the institutional allocation to 7.2 million shares (80% of the offering) if sufficient demand exists from individual subscribers.
Tranche B: Individual Subscribers
This tranche serves Saudi Arabian natural persons, including Saudi female divorcees or widows with minor children from non-Saudi marriages (who may subscribe for themselves or their minor children upon providing proper documentation). The tranche also includes non-Saudi natural persons residing in the Kingdom and GCC natural persons.
Up to 1.8 million Offer Shares (20% of the total offering) may be allocated to Individual Subscribers. Important restrictions apply: subscriptions made by individuals in the name of their divorced wives are invalid and subject to legal sanctions, and duplicate subscriptions will be rejected with only the first subscription accepted.
If Individual Subscribers do not fully subscribe to their allocated shares, the Financial Advisors may reduce this tranche proportionally based on actual subscription levels.
Direct Substantial Shareholders and Ownership Percentages held thereby Pre- and Post-Offering
| Shareholder | Shareholding (Pre-Offering) | Shareholding (Post-Offering) | ||||
|---|---|---|---|---|---|---|
| No. of Shares | Ownership (%) (1) | Overall Nominal Value (SAR) | No. of Shares | Ownership (%) (1) | Overall Nominal Value (SAR) | |
| Saudi Edarah Holding Company | 29,550,000 | 98.50% | 295,500,000 | 20,685,000 | 68.95% | 206,850,000 |
| Total | 29,550,000 | 98.50% | 295,500,000 | 20,685,000 | 68.95% | 206,850,000 |
Source: The Company.
(1) The ownership percentages have been rounded to the nearest two decimal place.
Expected Offering Timetable
| Event | Date |
|---|---|
| Book-building and participating parties subscription registration period | A period of five (5) days commencing on Sunday, 4 Jumada al-Ula 1447H (corresponding to 26 October 2025G), until the end of Thursday, 8 Jumada al-Ula 1447H (corresponding to 30 October 2025G). |
| Deadline for submitting subscription application forms by participating entities based on the number of shares initially allocated to each | Thursday, 15 Jumada al-Ula 1447H (corresponding to 6 November 2025G). |
| Deadline for payment of subscription amounts by participating entities based on the number of shares initially allocated to each | Monday, 19 Jumada al-Ula 1447H (corresponding to 10 November 2025G). |
| Individual investors subscription period | A period of two (2) days commencing on Wednesday, 21 Jumada al-Ula 1447H (corresponding to 12 November 2025G) until the end of Thursday, 22 Jumada al-Ula 1447H (corresponding to 13 November 2025G). |
| Deadline for submitting subscription applications and payment of subscription amounts by individual subscribers | Thursday, 22 Jumada al-Ula 1447H (corresponding to 13 November 2025G). |
| Announcement of final allocation of bid shares | No later than Wednesday, 28 Jumada al-Ula 1447H (corresponding to 19 November 2025G). |
| Refund of excess subscription amounts (if any) | No later than Thursday, 29 Jumada al-Ula 1447H (corresponding to 20 November 2025G). |
| Expected date for commencement of trading of shares on the market | Trading of the Company's Shares on the Exchange is expected to commence after the completion of all of the relevant legal requirements and procedures. The trading commencement date of the Shares will be announced in local newspapers and Tadawul's website (www.saudiexchange.sa). |
Note: The above timetable and dates therein are indicative and subject to change. Actual dates will be communicated on the websites of Tadawul (www.saudiexchange.sa), the Financial Advisors ((www.bsfcapital.sa) and (www.efghermesksa.com)) and the Company (www.cherry.com.sa).
Introducing the new IPO feature on Sahm platform: A step-by-step guide to subscribing to the IPO
Further updates regarding this IPO will be provided as more information becomes available.
