Jamjoom Pharmaceuticals Factory Company’s initial public offering (IPO) in Saudi Arabia has attracted significant interest from retail investors, with a total demand of 1.39 billion riyals ($0.37 billion), the company announced on Tuesday.
The retail subscription process allowed for a maximum of 2,100,000 shares, which represents 10 percent of the total shares available for purchase. The IPO was covered 11 times by retail investors, indicating strong demand for the company’s shares.
The final offer price for the IPO has been set at 60 riyals per share, which implies a market capitalization of 4.2 billion riyals ($1.12 billion) upon listing.
In a statement, the company revealed that a total of 170,524 investors participated in the offering, showcasing the widespread interest in Jamjoom Pharma. Each individual investor will receive a minimum of 4.0 shares, while the remaining shares will be allocated on a pro-rata basis to meet the remaining demand. The average allocation factor is calculated to be 0.5146 percent.
As part of the IPO, Jamjoom Pharma is offering 30 percent of its share capital, which corresponds to 21 million shares.
The company stated, “Following 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 shares allocated to cornerstone investors – the Saudi Economic and Development Holding Company and Al Faisaliah Group Holding Company), the shares allocated to participating parties will be reduced to 18,900,000 offer shares, representing 90 percent of the total offering.”
The IPO of Jamjoom Pharma marks an important milestone for the company, providing an opportunity for retail investors to be part of its growth story. The strong demand from retail investors reflects their confidence in the company’s prospects and the pharmaceutical industry in Saudi Arabia.
The funds raised from the IPO will enable Jamjoom Pharma to further expand its operations, invest in research and development, and pursue strategic initiatives to drive future growth. The company’s successful IPO also demonstrates the continued strength and attractiveness of the Saudi Arabian market for investors.
The company clarified that based on the results of the retail subscription period, the shares allocated to participating parties will be adjusted to 18,900,000 offer shares, representing 90 percent of the total offering.
This IPO marks a significant milestone for Jamjoom Pharma, providing an opportunity for retail investors to be part of the company’s growth journey. The strong demand from retail investors reflects their confidence in Jamjoom Pharma’s prospects and the pharmaceutical industry in Saudi Arabia.
The funds raised from the IPO will enable Jamjoom Pharma to fuel its expansion plans, invest in research and development, and pursue strategic initiatives for future growth. The successful IPO also underscores the continued strength and attractiveness of the Saudi Arabian market for investors seeking promising investment opportunities.
As the process of finalizing the shares allocated to retail investors concludes, Jamjoom Pharma is poised to proceed with the listing on the stock exchange. The company looks forward to leveraging the capital raised to strengthen its position in the pharmaceutical industry and create value for its shareholders.
Jamjoom Pharma stated that 170,524 investors participated in the IPO, signifying the broad-based interest and support from retail investors. The company has ensured that each individual investor will receive a minimum allocation of 4.0 shares, ensuring a fair distribution of shares among the participants. The remaining shares will be allocated on a pro-rata basis to cater to the additional demand, with an average allocation factor of 0.5146 percent.
As part of the IPO, Jamjoom Pharma offered 30 percent of its share capital, equivalent to 21 million shares. The strong oversubscription of the institutional order book by 67.2 times (88.8 times excluding shares allocated to cornerstone investors) further underscores the market’s confidence in the company’s growth potential.
The shares allocated to retail investors in the IPO will soon be finalized, and the company will proceed with the listing on the stock exchange. As Jamjoom Pharma enters this new phase, it aims to leverage the capital raised to enhance its position in the pharmaceutical industry and deliver value to its shareholders.
