Sport Clubs is guiding on a price range of SAR 7-7.50 per share for its main market IPO, according to a filing to Tadawul released yesterday. The IPO stands to raise up to SAR 257.3 mn in proceeds, implying a market cap of up to SAR 857.5 mn at listing.

Institutional subscriptions opened yesterday for 100% of the offering, and will run until Thursday, 26 June, during which large-scale investors will be able to book between 100k and 5.7 mn shares each. Retail investors will have a 20% clawback to subscribe to on Tuesday, 8 July, provided there is sufficient demand.

REMEMBER- The Riyadh-based fitness chain operator is taking a 30% stake to market — good for 34.3 mn shares, nearly three months after securing regulatory approval for the move. Existing shares account for some 23.9 mn shares — representing 21% of post-IPO capital — while the remaining portion being newly issued shares.

Use of the proceeds: Sport Clubs will use 60% of the net primary offering proceeds to set up and equip new fitness clubs. Meanwhile, 20% will be used to buy equipment, 16% to develop its existing facilities, and 4% to settle outstanding debts. Selling shareholders will take home net proceeds from the secondary share sale, while offering expenses will amount to SAR 25 mn.

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.

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