Wednesday 22 May 2024

Saudi pharma group Jamjoom eyes $1.12bn from IPO

RIYADH, May 25, 2023

Saudi-based Jamjoom Pharmaceuticals Factory Company today (May 25) announced the successful completion of the book-building process for participating entities and also set the final offer price for its initial public offering (IPO) on the Saudi bourse Tadawul at SR60 per share, thus implying a market capitalisation of SR4.2 billion ($1.12 billion) at listing.
A leading pharmaceutical manufacturer and marketer in the region, Jamjoom Pharma said it had entered into a binding agreement on May 11 with the 'cornerstone investors' - Saudi Economic and Development Holding Company (Sedco) and Al Faisaliah Group Holding Company.
As per the deal, the cornerstone investors have committed to subscribe for, in aggregate, 5,166,666 shares at the offer price, representing 24.6% of the offer shares.
The recorded orders during the institutional book-building stood at around SR84.6 billion ($22.6 billion), representing an oversubscription rate of 67.2 times (88.8 times excluding the shares that were allocated to cornerstone investors). 
The retail subscription period will last for three days, starting from May 30 and ending on June 1, said the statement from the Saudi pharma group.
Jamjoom set the price range for the Saudi Exchange IPO at between SR56 and SR60 a share, implying a valuation of between SR3.9 and SR4.2 billion, it said in a statement.
The company will offer 21 million shares, or 30% of its issued share capital, by selling existing shareholders' shares.
Saudi Fransi Capital is lead manager and is joined by JPMorgan as financial adviser. AlRajhi Capital joins is an underwriter and bookrunner.
Elaboarting on ist IPO journey, the Saudi pharma group said the process began last year with the nod from Capital Market Authority (CMA)  on December 28.
The go-ahead was given to the company to offer 21 million shares, representing 30% of the company’s issued share capital of 70 million shares, by way of a sale of existing shares by selling shareholders. 
For the key Offering, Jamjoom Pharma has appointed Saudi Fransi Capital as the Lead Manager, while JPMorgan is the financial adviser and AlRajhi Capital an underwriter and bookrunner. 
Top Saudi banks AlRajhi, Banque Saudi Fransi and Saudi National Bank (SNB) have been appointed as receiving entities for the individual investors’ tranche.


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