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Sports Clubs Company set the final offer price for its IPO at SAR 7.50 per share, pricing at the top end of the range, according to a disclosure to the bourse. Investor appetite was strong, with the institutional offering 44.1x oversubscribed.
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REFRESHER- The listing will see the Riyadh-based fitness chain float 30% of its share capital, or 34.32 mn shares, nearly three months after receiving regulatory approval. Of the total offering, 23.9 mn shares or 21% of post-IPO capital are existing shares, with the remaining portion comprising newly issued stock.
Proceeds + market cap: The IPO is expected to raise up to SAR 257.3 mn, implying a market capitalization of SAR 858 mn at listing. Of the net proceeds, the company plans to deploy 60% toward setting up and equipping new fitness clubs, 20% to purchase new equipment, 16% to upgrade existing facilities, and 4% to settle outstanding obligations. Selling shareholders will retain the proceeds from the secondary component, while offering expenses are estimated at SAR 25 mn.
Next up: Retail investors are set to be allocated up to 20% of the offering, with a one-day subscription window on 8 July. Each investor will be able to book a maximum of 250k shares, and a minimum of 10. Final allocation of shares is slated for no later than 10 July.
Post-IPO structure: Selling parties will retain a 56% post-IPO majority, down from 80%. Their shares will remain on lockup for 6 months from the first day of trading.
ADVISORS- BSF Capital is quarterbacking the transaction as lead manager, financial advisor, bookrunner, and underwriter. Kirkland & Ellis International is providing counsel. PwC is serving as financial due diligence advisor, Dr. Mohamed Al-Amri & Co. Chartered Accountants as auditor, and Portas Consulting MEA as market consultant.
Receiving agents include BSF Capital, Al Rajhi Capital, Albilad Investment, Riyad Capital, SNB Capital, ANB Capital, Derayah Financial, SAB Invest, and Alinma Investment, among others.
