Robert Vydra, Partner and Head of Equity Capital Markets at STAT, led the firm’s legal team advising Armah Sports Company on its approximately SAR 138 million initial public offering on Nomu – the Parallel Market of Saudi Exchange. STAT acted as legal adviser to the issuer. The company’s shares commenced trading on 30 November 2023.

The offering comprised 4,927,958 shares at SAR 28 per share, representing 15 per cent. of the company’s enlarged share capital: 4,106,666 newly issued shares and 821,292 existing shares. The IPO combined new equity for Armah with a selling-shareholder component.

Armah develops and operates fitness clubs under its Optimo and B_FIT brands. The company’s intended uses of its share of the net IPO proceeds included club construction and fit-out, fitness equipment, working capital and general corporate purposes.

Armah received the IPO of the Year 2023 – Nomu – Parallel Market award at the Saudi Capital Market Awards 2023, organised by Saudi Tadawul Group, recognising the transaction on which STAT advised the issuer.

Saudi IPO experience in fitness and consumer services

In addition to his work on Armah Sports’ IPO, Robert Vydra advised Leejam Sports Company on its SAR 817 million Main Market IPO before co-founding STAT. His fitness-sector IPO experience therefore extends across both the Main Market and Nomu.

For a fitness-club issuer, investors need to distinguish established clubs from new locations still building their membership base. IPO preparation should connect membership revenue and expansion plans with property arrangements, construction costs, equipment procurement and funding.

A combined new- and existing-share offering also needs to distinguish capital raised for the business from proceeds payable to selling shareholders.

About the lead partner

Robert Vydra is Partner and Head of Equity Capital Markets at STAT in Riyadh.

He has advised on Saudi capital markets since 2007, with a practice covering issuer-side IPOs, prospectus disclosure, transaction structuring and continuing obligations.

Preparing a fitness or consumer-services business for a Saudi IPO?

To discuss IPO readiness, expansion funding or the structure and disclosure of a Main Market or Nomu offering, contact Robert Vydra.
rvydra@statlawksa.com | +966 55 001 5326