Jamjoom lines up SAR 37.8 mn in financing for its JV in Algeria

Generic drugmaker Jamjoom Pharma lines up SAR 37.8 mn in fresh funds for its JV in Algeria:Jamjoom ’s board of directors has signed off on a capital increase at its Algerian subsidiary that will allow the unit to obtain a DZD 666.4 mn (SAR 37.8 mn) shariah-compliant revolving credit facility from Al Salam Bank-Algeria, according to a company disclosure to Tadawul on Wednesday.

The background: Under Algerian law, Jamjoom has to provide a guarantee to Al Salam proportional to its shareholding in the JV. The capital increase will see Jamjoom on the hook for the equivalent of SAR 18.5 mn.

Use of funds: The JV is looking to build or buy a manufacturing facility, build up inventory, and pay day-to-day operating expenses. Jamjoom hasn’t said when it hopes the plant will become operational.

REMEMBER- Jamjoom hit a home run this year: The leading drugmaker pulled off the largest IPO on Tadawul since Aramco’s listing, rising by the maximum allowed in its trading debut last June. The owners raised SAR 1.26 bn with company shares valued at SAR 60 apiece.