Retail subscriptions for 1.57 million shares of Riyadh-based Leejam Sport Co.’s initial public offering (IPO) will start on Tadawul today, Aug. 1, at a share price of SAR 52 set by the book-building process.
Saudi Arabia’s Capital Market Authority (CMA) approved on June 6 the flotation of a 30 percent (15.72 million shares) shareholding of Leejam.
Ninety percent of the shares are allocated to institutional investors, and 10 percent are offered to retail investors.
Retail subscriptions last for seven days, ending on Aug. 7, 2018.
Institutional subscriptions ended last week, with a coverage rate of 8.3 times.
Leejam’s IPO is the first offering on Tadawul Main Market in 2018, as the last offering was Zahrat Al Waha For Trading Co.’s in August 2017.
Company details:
Leejam Sports Company, a closed joint stock, was established in 2008. It is the largest fitness center company in Saudi Arabia and the MENA region. As of 31/12/2017, it owned and operated 112 fitness centers. It has 108 fitness centers in Saudi Arabia across 23 cities and 4 fitness centers in the UAE.
Leejam’s fitness centers:
The company increased its fitness centers network over the past ten years to 112 existing centers, with 31 fitness under development as of Dec. 31, 2017.
The number of members grew over the last years to 210,000 subscribers, increasing the firm’s market share to 27 percent of the Kingdom’s male fitness market.
Leejam offers its services through several brand categories:
|
Subscribers and revenues/gym category |
||||
|
Brand category |
Revenue (2017) |
% of revenue |
No. of centers * |
No. of subscribers |
|
Fitness Time Plus |
27,476 |
3.7% |
4 |
3,686 |
|
Fitness Time |
360,752 |
49.2% |
51 |
82,547 |
|
Fitness Time Pro |
206,968 |
28.2% |
41 |
73,792 |
|
Fitness Time Basic |
1,320 |
0.2% |
-- |
-- |
|
Fitness Time Junior |
20,276 |
2.8% |
8 |
3,718 |
|
Fitness Time Academy |
166 |
0.02% |
-- |
-- |
|
Fitness Time Ladies |
14,576 |
2.0% |
8 |
12,333 |
|
Corporate clients and rentals |
101,313 |
13.8% |
-- |
33,872 |
|
Total |
732,846 |
100% |
112 |
209,948 |
Company Assets:
Leejam Sport Co.’s assets reached SAR 1.5 billion by the end of 2017, compared to SAR 1.36 billion a year earlier.
|
Net assets in and outside the Kingdom (SAR mln) |
|||
|
Assets |
2015 |
2016 |
2017 |
|
Total assets in Saudi Arabia |
1,001.87 |
1,311.83 |
1,448.90 |
|
Total assets outside the Kingdom |
47.99 |
44.56 |
56.03 |
|
Total Assets |
1,049.86 |
1,356.39 |
1,504.93 |
|
% of assets abroad to total assets |
4.58% |
3.29% |
3.72% |
Key company data:
|
Company details |
|
|
Company’s name |
Leejam Sports Co. |
|
Business field |
Building, managing, and operating fitness centers |
|
Status |
Operating |
|
Capital |
SAR 523.83 million |
|
IPO Summary |
|
|
IPO percentage |
30% of capital |
|
Number of shares offered to retail investors |
1.57 mln shares |
|
Percentage of retail shares |
10% of total IPO shares |
|
Share price |
SAR 52 per share |
|
IPO size (Retail) |
SAR 81.7mln |
|
Eligible subscribers |
Saudi and GCC individuals |
|
Minimum subscription |
10 shares |
|
Maximum subscription |
250,000 shares |
|
Subscription period |
7 days starting from Aug.1-Aug. 7, 2018 |
|
Shares allotment |
Tuesday, August 14, 2018 |
|
Refund of excess subscription |
Tuesday, August 14, 2018 |
|
Additional information |
|
|
Financial advisor, IPO Lead Manager, Bookrunner and Underwriter |
Samba Capital |
|
Receiving banks |
Leejam has appointed seven receiving banks, including Al Rajhi Bank, Arab National Bank (ANB), Banque Saudi Fransi (BSF), National Commercial Bank (NCB), Saudi British Bank (SABB), Riyad Bank and SAMBA Financial Group. |
Shareholders:
Hamad Ali Al Sagri is Leejam’s biggest shareholder, owning a 60.5 percent stake in the firm.
The following table shows the firm’s shareholders:
|
Leejam’s shareholders |
||||
|
Shareholders |
Shares before IPO (mln) |
% |
Shares after IPO (mln) |
% |
|
Hamad Ali Al Sagri |
31.67 |
60.5% |
31.67 |
60.5% |
|
Target Opportunities for Trading Co. |
13.15 |
25.1% |
1.36 |
2.6% |
|
14 other shareholders |
7.56 |
14.4% |
3.63 |
6.9% |
|
Public |
-- |
-- |
15.72 |
30.0% |
|
Total |
52.38 |
100% |
52.38 |
100% |
Retail subscriptions to IPOs on Tadawul in the last three years:
|
Latest IPOs (SAR) |
|||
|
Company |
Offering price |
Retail tranches (mln shares) |
Coverage rate-retail |
|
2017 |
|||
|
Zahrat Al Waha For Trading |
51 |
0.9 |
263% |
|
2016 |
|||
|
L’Azurde |
37 |
3.87 |
293% |
|
Al Yamamah Steel |
36 |
4.57 |
479% |
|
Saudi German Hospital |
64 |
8.28 |
274% |
|
2015 |
|||
|
Alandalus Property |
18 |
8.40 |
464% |
|
Saudi Ground Services |
50 |
22.60 |
339% |
|
SACO |
70 |
2.88 |
620% |
|
Mepco |
30 |
6.00 |
473% |
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