Saudi Edition 
Egypt Edition 
UAE Edition 
MENA <> India Corridor 
Logistics (MENA) 
Climate (MENA) 
Share
Retail investors piled into Sport Clubs’ Tadawul IPO, snapping up shares in the firm’s retail offering (20% of total offering) which was 5.3x oversubscribed, according to a statement (pdf). The Riyadh-based fitness chain is taking a 30% stake to Tadawul, nearly four months after receiving regulatory approval.
Strong demand: The retail round came on the heels of an institutional tranche that was 44.1xoversubscribed, allowing the company to price its IPO at SAR 7.5 per share — the top of the range it was guiding on.
Proceeds + market cap: The offering includes both primary and secondary shares, with proceeds from the new shares issuance (up to SAR 257.3 mn) set to fund expansion and upgrades. The IPO implies a market cap of SAR 858 mn at listing, with selling shareholders set to retain a 56% stake, with a six-month lockup period.
BUT- Will it buck the trend of muted debuts? Market watchers are expected to monitor the Sport Clubs’ debut performance closely amid a slew of recent muted debuts. The main market’s three latest listings, namely United Carton Industries, Flynas, and Specialized Medical Company, slumped on the first day of trading amid broader market jitters.
Sports sector listings are back to the main market: Sport Clubs is the first fitness company to go public on Tadawul since Fitness Time operator Leejam Sports debuted in 2018, ending a seven-year drought for the sector. Leejam’s share price has gained 169% since its debut, climbing to SAR 140.2 as of yesterday, up from SAR 52.
… and one more is jumping in from Nomu: Armah Sports — which listed on Nomu in late 2023 — is moving to the main market after its board of directors approved the transition in June, pending regulatory approvals.
ADVISORS- BSF Capital is quarterbacking the transaction as lead manager, financial advisor, bookrunner, and underwriter. 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.
Tadawul is still sitting on a packed IPO pipeline: Alramz Real Estate and GruenenfelderSaady Holding were the latest to secure regulatory approval to float a 30% stake on the main market, joining Marketing Home Group and Dar Al Majed. Meanwhile, Ejada Systems, which missed its six-month IPO window, is set to resubmit an IPO application to the Capital Market Authority.
