Legal Advisors Abdulaziz Alajlan & Partners and Baker McKenzie acted for Jamjoom Pharma on its Tadawul IPO
So far, the offering is Saudi Arabia’s largest this year
Legal advisors Abdulaziz Alajlan & Partners and Baker & McKenzie Limited have acted as legal advisors to Jamjoom Pharmaceuticals Factory Company in relation to its SAR1,260 million (USD 336 million) IPO on the Saudi Stock Exchange (referred to as Tadawul).
Jamjoom Pharma has its roots in various business enterprises of the Jamjoom family, which entered the Saudi pharmaceutical market in the 1960s. The company is one of the leading manufacturers of generic pharmaceutical products in Saudi Arabia. It operates in different markets within the MEA region.
The offering comprised selling shareholders 21 million shares or 30 percent of the issued share capital of the company. It was extended to domestic and international investors. Based on its IPO offer price of SAR 60 per share, the company has an implied market capitalization of SAR 4.2 billion (USD 1.12 billion), making the offering Saudi Arabia’s largest IPO so far this year.
It received extremely strong institutional support, demonstrated by the unique participation of two cornerstone investors - Saudi Economic and Development Holding Company (SEDCO) and Al Faisaliah Group Holding Company (AFG). The two subscribed for 5,166,666 shares (or 24.6 percent).
The offering was oversubscribed by 67.2 times (88.8 times excluding the shares allocated to Cornerstone Investors) and received great interest among institutional investors in Saudi Arabia and internationally.
Commenting on the transaction, Karim Nassar of Baker McKenzie stated, “We are incredibly proud to have supported Jamjoom Pharma on the largest Saudi IPO to date this year. It’s been an exhilarating journey working closely with our clients to navigate the complexities of this IPO and witness their successful entry into the Saudi public market. This deal is a testament to the hard work, dedication, and collaborative efforts of all parties involved.”
Robert Eastwood and Samar Baharon who led the Abdulaziz Alajlan & Partners team, commented, “This milestone achievement not only reflects the exceptional potential of our client’s innovation, but also highlights the resilience and dedication of their team. It has been a privilege to support Jamjoom Pharma through this transformative process and we look forward to witnessing their continued growth and impact in the pharmaceutical sector.”
Abdulrahman Alajlan added, “This deal has set a new standard in the industry and we are honored to have played a role in its realization. We wish our clients every success post-listing, as they take the opportunity to leverage the public market to fuel their growth and expand their business.”
The cross-border team comprised Robert Eastwood, Samar Baharon, Charles Farnsworth, Khadija Numan and Bayan Al Daej from Baker McKenzie London.
Saudi Fransi Capital acted as Lead Manager and J.P. Morgan Saudi Arabia Company and Saudi Fransi Capital acted as joint Financial Advisors.
The company also appointed AlRajhi Capital, J.P. Morgan Saudi Arabia Company, and Saudi Fransi Capital as Underwriters and Book runners.