The owners of Jamjoom Pharmaceuticals Factory Co. are seeking to raise as much as 1.26 billion riyals ($336 million) in its Riyadh initial public offering, which is set to be the biggest listing in the kingdom so far this year.
The Jamjoom family are offering 21 million shares in the drugmaker at 56 riyals to 60 riyals apiece, according to a statement on Monday. The price range implies a valuation of as much as 4.2 billion riyals for Jamjoom Pharma.
Saudi Economic & Development Holding Co. and Al Faisaliah Group have agreed to subscribe for 24.6% of the offering as cornerstone investors.
Jamjoom Pharma’s IPO will be the largest in Saudi Arabia since Saudi Aramco Base Oil Co.’s $1.3 billion listing in December, data compiled by Bloomberg show.
The kingdom’s IPO market has been subdued so far this year, with just $72 million raised in the slowest start since 2014, a far cry from the $4 billion seen by this point last year.
Weaker oil prices on concerns that slower global economic growth might hurt demand have weighed on Saudi stocks, which dropped sharply over the past year. However they have posted a 14% rebound since a March low after OPEC+ announced a surprise oil production cut at the start of April.
Morabaha Marina Financing, a non-bank finance institution, has also pushed ahead with bookbuilding for its Saudi IPO in which it’s seeking to raise as much as $83 million.
Still, other potential issues are proceeding cautiously. ADES International Holding, an oil and gas driller backed by the kingdom’s wealth fund, has pushed back its IPO to the second half of the year as it waits for the right window, while preparatory work has significantly slowed down for the IPO of Aramco’s energy-trading business, Bloomberg News reported.
Bookbuilding for institutional investors in Jamjoom Pharma’s IPO will run from May 15 to May 22, while the retail offering will take place from May 30 to June 1.
JPMorgan Chase & Co. and Saudi Fransi Capital are financial advisers, bookrunners and underwriters while Al Rajhi Capital is also an underwriter.
