Saudi pharma group Jamjoom eyes $1.12bln from IPO

Saudi Arabia

Saudi pharma group Jamjoom eyes $1.12bln from IPO

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