(Corrects founder's current title to vice chairman, not
chairman, in para 3)
By Hadeel Al Sayegh and Celine Aswad
DUBAI May 23 Saudi Arabian sports and fitness
business Leejam Sports Co is targeting an initial public
offering in the fourth quarter in a share sale expected to raise
1 billion riyals ($266.65 million), sources familiar with the
deal told Reuters on Tuesday.
The company hired the investment banking arm of Samba
Financial Group and Rothschild last year to
arrange its share sale, which will see 30 percent sold to the
public and a listing on the Tadawul stock exchange based in
Saudi Arabia's capital, Riyadh.
Leejam, established in 2007 by vice chairman Abdulmohsen
al-Haqbani, operates 120 locations across Saudi Arabia and Dubai
under the brand name Fitness Time, according to its website.
The company plans to formally apply for an IPO with the
stockmarket regulator, the Capital Market Authority, in the
coming weeks, according to a banking source, who spoke on
conditions of anonymity because the matter was not public.
A second banking source said the company was IPO-ready and
had completed all the required processes for the listing except
the official request to the regulator.
Much of the shares put up for sale will likely to come from
Bahraini alternative investment firm Investcorp, sources told
Reuters in May last year.
Investcorp, which acquired a 25 percent stake in the firm in
2013, declined to comment when contacted by Reuters. A spokesman
for Leejam Sports did not immediately respond to a request for
($1 = 3.7503 riyals)
(Editing by Louise Heavens)