Riyadh’s Sport Clubs Company has received approval to float 30% of its shares on the Saudi stock exchange, allowing the sale of 34.3 million shares. The six-month approval reflects the company’s extensive network of fitness facilities and recent expansion into equipment distribution. The growth of IPOs among Saudi firms indicates a positive trend in the economic landscape.
Sport Clubs Company, based in Riyadh, has secured approval to list 30 percent of its shares on the Saudi stock exchange. This includes the sale of 34.3 million shares in the main market, following the nod from the Capital Market Regulator. The approval is valid for a duration of six months, and should the initial public offering (IPO) not occur within this timeframe, the approval will be rendered null.
Founded in 1994, Sport Clubs operates 56 branches across 18 cities in Saudi Arabia. The company boasts a diverse portfolio with 41 men’s clubs branded as “Body Masters” and 15 women’s clubs under the “Body Motions” brand, as indicated on its website. Additionally, in 2020, Sport Clubs expanded its operations to include fitness equipment distribution, launching a division named Body Experts.
So far this year, four Saudi companies have successfully completed their IPOs and listed on the main exchange: Almoosa, Nice One, Derayah Financial, and Arabian Company for Agricultural and Industrial Investment (Entaj). The ongoing expansion of businesses within the country reflects a growing trend in the Saudi market, particularly in the fitness sector and broader wellness initiatives.
The approval of Sport Clubs Company to list a substantial portion of its shares represents a positive step in Saudi Arabia’s economic landscape, especially in the fitness industry. With a well-established presence and expansion plans, the company aims to capitalize on the growing wellness trend. Overall, this move signifies a burgeoning interest in IPOs among Saudi companies and highlights the potential for growth in various sectors, including fitness and wellness.
Original Source: www.agbi.com
