Jamjoom Pharma sets IPO price range: Aiming to raise $336 mn

Cornerstone investors agreed to subscribe
Jamjoom Pharma sets IPO price range: Aiming to raise $336 mn
Jamjoom (Photo from Jamjoom Pharma)

Saudi Arabia’s Jamjoom Pharmaceuticals Factory Company has set the price range for its initial public offering (IPO) that could raise as much as 1.26 billion riyals ($336 million), the company said on Monday.

Jamjoom set the price range for the Saudi Exchange IPO at between 56 and 60 riyals a share, implying a valuation of between 3.9 and 4.2 billion riyals, it said in a statement.

The company will offer 21 million shares, or 30% of its issued share capital, by selling existing shareholders’ shares.

Read more: ADNOC Logistics & Services to offer over a billion shares in IPO

Saudi Fransi Capital is the lead manager and is joined by JPMorgan as a financial adviser. AlRajhi Capital joins as an underwriter and book-runner.

The final price will be set after the book building, which started on Monday, May 15, and ends on May 22. Subscription for retail investors runs from May 30 to June 1.

Saudi Economic & Development Holding Co. and Al Faisaliah Group have agreed to subscribe for 24.6% of the offering as cornerstone investors.

Jamjoom Pharma’s IPO will be the largest in Saudi Arabia since Saudi Aramco Base Oil Co.’s $1.3 billion listing in December, data compiled by Bloomberg show.

Slower start


The Kingdom’s IPO market has seen a slower start this year, with only $72 million raised. This is in contrast to the $4 billion raised by this point last year, making it a less active market compared to previous years.

Morabaha Marina Financing, a financial institution outside the banking sector, has begun book building for its Saudi IPO. The company aims to raise $83 million through the offering.

According to Bloomberg News, ADES International Holding, an oil and gas drilling company supported by the Saudi wealth fund, has postponed its IPO to the second half of the year.

Click here for more news on markets.