Saudi’s Leejam Sports to issue IPO next month

Saudi Arabian sports and fitness business Leejam Sports Co will offer 30 per cent of its existing shares in a public offering (IPO) next month, according to a prospectus on the Saudi bourse website.

The listing is the latest in what is expected to be a busy pipeline of public share sales in the kingdom, encouraged by a government drive to entice investment and diversify the economy away from a reliance on oil.

Leejam’s subscription period takes place from August 1 to August 7.

The company will offer shares to both Saudi nationals and institutional investors. Potential investors can subscribe for shares between Aug. 1-7.

Reuters reported in May last year that the investment banking arm of Samba Financial Group and Rothschild had been selected to arrange a share sale, which was expected to raise SAR1bn ($266.7m).

Since then the company, which operates around 115 fitness clubs under the Fitness Time brand, has been waiting for the right opportunity to list, sources told Reuters in February this year.

Bahrain-listed private equity firm Investcorp acquired a 25 per cent stake in the firm in 2013.