Jamjoom Fashion Trading — the retail brand creator behind Nayomi and Mihyar — is gearing up to list a 30% stake on Tadawul’s parallel market Nomu, according to its prospectus (pdf). The offer will see selling shareholder Kamal Osman Jamjoom Trading (KOJ Trading) offload 2.38 mn shares to qualified investors between 1-4 September. Investors can subscribe to a minimum of 10 shares and a maximum of 396.6k shares each. The final allocation of shares will be announced on 9 September.

No new capital: The IPO is a pure secondary sale, with all proceeds going to KOJ Trading, minus SAR 12 mn in offering expenses. KOJ will retain a 70% stake in the company post-IPO and is barred from selling additional shares for 12 months following the listing.

About Jamjoom: The company operates two flagship brands — women’s apparel brand Nayomi and men’s national wear brand Mihyar. Jamjoom claims that Nayomi leads the local underwear and nightwear market with an 8.2% share, operating 101 local stores as of September 2024. Meanwhile, Mihyar operates 49 stores in 20 cities nationwide and a total of 216 stores across the GCC as of the end of 2024.

A booming market: According to Jamjoom, the domestic womenswear market was worth SAR 29.1 bn in 2023 and is forecast to hit SAR 35.4 bn by 2029, while the national wear segment was valued at SAR 5.6 bn and is on track to hit SAR 6.5 bn by 2029.

Earnings snapshot: Jamjoom Fashion saw its net income rise 149.5% y-o-y in 4Q 2024 to SAR 17 mn, while its revenue increased 15.2% y-o-y during the quarter to SAR 146.2 mn. Stronger sales and improved margins underpinned the company’s quarterly performance.

Peer comparison: Fashion retailer Fad International made its Nomu debut in November 2023 at SAR 84 per share. Since then, it has traded as high as SAR 117 and as low as SAR 67, currently changing hands below its IPO price at SAR 76.6.

No dividends distribution in sight: The company distributed SAR 50 mn in dividends for its last fiscal year, which ended on 30 September 2024. The offer shares are not entitled to any dividends announced prior to the date of the prospectus, and there are no declared or outstanding dividends as of that date.

ADVISORS- EFG Hermes KSA is serving as the financial advisor and lead manager on the transaction, while Zeyad Sameer Khoshaim Law Firm is providing counsel. PwC is the financial due diligence advisor, and Euromonitor International is the market consultant.

Receiving agents: Qualified investors can subscribe to the offering through a network of receiving agents that includes Al Rajhi Capital, SNB Capital, BSF Capital, Riyad Capital, Al Bilad Investment, Al Jazira Capital, Alistithmar Capital, Derayah Financial, Alinma Capital, Arab National Bank Financial, Yaqeen Capital, Al Khabeer Capital, Al Awwal Investment (Sab Invest), Saham Capital, GIB Capital, EFG Hermes KSA, Musharaka Capital, and Awaed Alosool Capital.

ALSO IN THE NOMU PIPELINE- The Capital Market Authority has recently approved the listing of online supplement store Alwazn Almithaly for Trading, medical equipment supplier Wajd, Qudra for Communications and IT, and two new equity funds to list on the parallel market. Property developer Hammad Mohammed Bin Saedan Real Estate issued its prospectus earlier this week, after Sign World issued its own prospectus last month.

IN OTHER IPO NEWS-

National Signboards Company for Industry (Sign World) is guiding on a price range of SAR 12-15 per share for its 20% stake offering on Tadawul’s parallel market Nomu, the transaction’s financial advisor Yaqeen Capital said in a disclosure to Tadawul yesterday.

Proceeds + market cap: At the top of the range, the pricing would see Sign World raise SAR 22.5 mn in proceeds, and would give it a market cap of SAR 112.5 mn at listing, according to our calculations. Sign World intends to allocate all the offering’s proceeds to funding its SAR 37 mn expansion plan, new metal structures, machinery upgrades, and vehicle purchases, minus SAR 6 mn for listing-related expenses.

REMEMBER- This is the first primary issuance on the parallel market since Anmat Technology’s IPO in May — an uncommon structure for Nomu listings, which are more commonly designed to facilitate shareholder exits. Al Mohandess Group Holding, Sign World’s sole owner, will see its share diluted to 80% post-listing and will be restricted by a 12-month lockup period from the first day of trading.

What’s next? Qualified investors can book a minimum of 10 shares and a maximum of c.375k apiece between Sunday, 17 August and Sunday, 24 August. Final allocations are set for Wednesday, 27 August.

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