Jamjoom Pharma IPO draws demand of 1.39 billion riyals from retail investors

Jamjoom Pharma IPO draws demand of 1.39 billion riyals from retail investors

Jeddah: The initial public offering (IPO) of Saudi Arabia’s Jamjoom Pharmaceuticals Factory Company was covered 11 times by retail investors, with a total demand of 1.39 billion riyals ($0.37 billion), the company said on Tuesday. The retail subscription process comprises a maximum of 2,100,000 shares, representing 10 per cent of the total shares on offer. The final offer price has been set at 60 riyals per share, implying a market capitalisation of 4.2 billion riyals ($1.12 billion) at listing. “The offering witnessed participation by 170,524 investors, indicating a coverage of 11.0 times. Individual investors will receive a minimum of 4.0 shares each, while the remaining shares will be allocated on a pro-rata basis for the remaining demand with an average allocation factor of 0.5146 per cent,” the company said in a statement. Jamjoom is offering 30 per cent of its share capital, or 21 million shares, in the IPO. “This follows the successful completion of the book-building process, which resulted in an institutional order book that was over-subscribed by 67.2 times (88.8 times excluding the shares that were allocated to cornerstone investors – the Saudi Economic and Development Holding Company and Al Faisaliah Group Holding Company). Based on the results