Jeddah: The initial public offering (IPO) of Saudi Arabia’s Jamjoom Pharmaceuticals Factory Company was covered 11 times by retail investors, with a total demand of 1.39 billion riyals ($0.37 billion), the company said on Tuesday.
The retail subscription process comprises a maximum of 2,100,000 shares, representing 10 per cent of the total shares on offer.
The final offer price has been set at 60 riyals per share, implying a market capitalisation of 4.2 billion riyals ($1.12 billion) at listing.
“The offering witnessed participation by 170,524 investors, indicating a coverage of 11.0 times. Individual investors will receive a minimum of 4.0 shares each, while the remaining shares will be allocated on a pro-rata basis for the remaining demand with an average allocation factor of 0.5146 per cent,” the company said in a statement.
Jamjoom is offering 30 per cent of its share capital, or 21 million shares, in the IPO.
“This follows the successful completion of the book-building process, which resulted in an institutional order book that was over-subscribed by 67.2 times (88.8 times excluding the shares that were allocated to cornerstone investors – the Saudi Economic and Development Holding Company and Al Faisaliah Group Holding Company). Based on the results of the retail subscription period, the shares allocated to participating parties will be reduced to 18,900,000 offer shares, representing 90 per cent of the total offering,” the company said.
“Based on the results of the retail subscription period, the shares allocated to participating parties will be reduced to 18,900,000 offer shares, representing 90 per cent of the total offering,” the company added.