In July 2024, SEDCO announced the sale of AutoWorld, its fully owned subsidiary and one of the Kingdom’s top auto leasing companies, to United International Transportation Company (known as Budget Saudi) in exchange for SEDCO taking an 8.96% stake in Budget Saudi.
The transaction represented a milestone in SEDCO’s transformation into an active financial investor, reinforced the successful implementation of its strategy of backing strong local businesses, and heralded AutoWorld’s next chapter of growth.
Budget Saudi increased its share capital from SAR 711.6 million to SAR 781.6 million by issuing 7 million new ordinary shares after the capital increase, making SEDCO one of the company’s major shareholders.
Budget Saudi is the largest auto rental and leasing companies in the Middle East. Listed on the Saudi Exchange (Tadawul), the company was founded in 1978 and is headquartered in Jeddah, Saudi Arabia. It operates a fleet of more than 37,000 cars, with more than 110 rental locations and 1,700 employees across Saudi Arabia.
The deal sees the integration of AutoWorld’s assets and operations into Budget Saudi's portfolio, a strategic expansion increasing Budget Saudi’s fleet to 50,000+ vehicles.
Rayyan Nagadi, CEO of SEDCO said: “This transaction is a powerful endorsement of SEDCO’s confidence in the Saudi market and our willingness to invest in promising sectors that offer high growth potential. The deal is also a testament to SEDCO’s dedication to creating sustainable value in its portfolio and our ability to generate significant return on investment.”
The nature of the transaction and its bespoke structure underscored SEDCO’s ability to identify and then execute investments in robust organizations offering significant growth potential. The current and anticipated future growth of the auto rental and leasing sector in the Kingdom, allied to Budget’s exceptional leadership performance and a supportive government ecosystem, provided the perfect backdrop for such a deal.
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