Sport Clubs offers 6.86M shares at SAR 7.5 to retail investors

Logo of Sport Clubs Co.

Sport Clubs Co.launched a retail offering of 6.86 million shares on the Main Market (TASI) today, July 8, pricing the shares at SAR 7.5 each, as set through the book-building process.

The retail subscription period will be open for one day only.

The shares allocated to individual subscribers represent 20% of the total shares on offer.

For More IPOs

In March, the Capital Market Authority (CMA) approved the company’s application to list and offer 34.32 million shares on TASI. The offer represents 33% of Sport Clubs’ pre-IPO capital of SAR 104 million, divided into 104 million shares with a par value of SAR 1 each.

Post-IPO, the offering will account for 30% of the company’s enlarged capital following the issuance of new shares.

The institutional tranche of the sale closed last week, and was nearly 44.1x covered. 

Sport Clubs will be the seventh company to list on TASI this year, following the IPOs of Derayah Financial on Feb. 20, Arabian Company for Agricultural & Industrial Investments (Entaj) on Feb. 26, Umm Al Qura for Development and Construction Co. (Masar) on May 5, United Carton Industries Co. (UCIC) on May 12, Flynas Co. on May 28, and Specialized Medical Co. (SMC) on June 15.

Tadawul witnessed 14 IPOs last year, following listings by Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona Co. and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26, Al Taiseer Group Talco Industrial Co. (TALCO) on May 28, Rasan Information Technology Co. on May 29, Almajed for Oud Co. on Sept. 15, Arabian Mills Co. on Sept. 18, Fourth Milling Co. (MC4) on Oct. 2, Tamkeen Human Resources Co. on Nov. 5, United International Holding Co. on Nov. 19,  Almoosa Health Co. on Dec. 23, and Nice One Co. on Dec. 24.

Key Background

Established in 1994 as a closed joint stock company headquartered in Riyadh, Sport Clubs engages in a range of activities related to the sports and fitness industry.

The company’s core business includes the wholesale and retail trade of sports equipment, tools, and apparel. It also purchases land for the construction of buildings and invests in them through sale or lease for the benefit of the company.

In addition, Sport Clubs is involved in the establishment, management, and maintenance of sports halls, as well as general contracting for buildings and electrical, mechanical, and electronic works.

Sport Clubs operates through two main business segments.

The first segment focuses on the establishment, management, and operation of sports clubs. The company runs its own network of fitness centers, including men’s clubs under the “Body Masters” brand and women’s clubs under the “Body Motions” brand.

The second segment involves integrated sports facility services, provided under the “Body Experts” brand. Through this division, the company offers a comprehensive suite of services, including sports consulting, gym and fitness center design and construction, and related sports facility development, either directly or through subcontractors. The services also cover equipment layout planning, furnishing, supply of sports equipment, and the operation and maintenance of sports facilities.

Subsidiaries and Branches

The company has one subsidiary, Third Sports Amaken Co., whose activities include renovation of residential and non-residential buildings, demolition and removal of buildings, interior finishing works, as well as maintenance and general cleaning services for buildings.

Sport Clubs also operates 12 branches across major cities in Saudi Arabia to carry out its business activities.

As of the end of September 2024, the company employed 1,258 employees, of whom 471 are Saudi nationals, according to the prospectus.

Market Share

The company ranks as the second-largest player in the market, with a market share of 10.9%, representing approximately 109,000 active members across 55 locations as of the beginning of 2024.

The table below shows the market share of fitness club chains in Saudi Arabia as of 2024:

Geographical Location

The company’s headquarters is in Riyadh, Saudi Arabia. All of the company's sports clubs are also located within the Kingdom, and the company has no operations or assets outside Saudi Arabia. The following table shows the geographical presence of Sport Clubs:

Fitness Clubs by Category

The company establishes, manages, and operates its own sports clubs, which include men's sports clubs under the "Body Masters" brand and women's sports clubs under the "Body Motions" brand.

The company owns and operates 56 sports clubs.

The company's revenue from its activities amounted to approximately SAR 217.4 million, representing 91.2% of the company's total revenue. The following table shows the details: