Jamjoom Pharmaceuticals Factory Company, a prominent pharmaceutical manufacturer and marketer in Saudi Arabia, has successfully concluded the book-building process for its initial public offering (IPO) and has set the final offer price at SR60 per share on the Saudi bourse Tadawul. This implies a market capitalization of SR4.2 billion ($1.12 billion) upon listing.
The company recently entered into a binding agreement with cornerstone investors, Saudi Economic and Development Holding Company (Sedco) and Al Faisaliah Group Holding Company, who have committed to subscribing for 24.6% of the offer shares at the offer price.
During the institutional book-building phase, Jamjoom Pharma received recorded orders of approximately SR84.6 billion ($22.6 billion), resulting in an oversubscription rate of 67.2 times (88.8 times when excluding the shares allocated to cornerstone investors).
The retail subscription period is scheduled to last for three days, commencing on May 30 and concluding on June 1, according to the statement released by the Saudi pharmaceutical group.
Jamjoom Pharma has set the price range for its IPO on the Saudi Exchange at SR56 to SR60 per share, indicating a valuation between SR3.9 billion and SR4.2 billion, as per the company’s statement.
The IPO process began last year when Jamjoom Pharma received approval from the Capital Market Authority (CMA) on December 28. The company plans to offer 21 million shares, equivalent to 30% of its issued share capital, through the sale of existing shareholders’ shares.
Saudi Fransi Capital is serving as the lead manager, with JPMorgan acting as the financial adviser. AlRajhi Capital has also joined as an underwriter and bookrunner for the IPO.
Leading Saudi banks, including AlRajhi, Banque Saudi Fransi, and Saudi National Bank (SNB), have been appointed as receiving entities for individual investors participating in the offering.
