Riyadh-based Sport Clubs Company has earned approval to float 30 percent of its share capital on the Saudi stock exchange, marking a significant development in the region’s fitness and wellness industry. The Capital Market Authority (CMA) has sanctioned the sale of 34.3 million shares on the main market, providing the company a six-month window to complete the initial public offering (IPO).
Founded in 1994, Sport Clubs Company is a prominent player in Saudi Arabia’s fitness sector, operating 56 branches across 18 cities. Its robust portfolio includes 41 men’s clubs branded as “Body Masters” and 15 women’s clubs under the “Body Motions” brand, reflecting its strategic focus on both male and female fitness markets.
The company’s move comes amid a broader wellness drive in Saudi Arabia, supported by Vision 2030 initiatives that emphasize health and lifestyle improvements. As the Kingdom seeks to diversify its economy, the fitness market is expanding rapidly, with industry reports suggesting the sector could grow by over 10% annually. The entry of Sport Clubs into the fitness equipment distribution market with its Body Experts division in 2020 further exemplifies its ambitions to capture a larger share of the health and wellness sector.
The IPO will follow the successful listings of four other Saudi companies this year: Almoosa, Nice One, Derayah Financial, and Arabian Company for Agricultural and Industrial Investment (Entaj), indicating robust investor interest in diversifying opportunities within the Saudi market.
Fitness industry analyst Dr. Marwan Al-Fayez commented, “The growth of the wellness sector in Saudi Arabia is a testament to changing lifestyles and increased health consciousness. Sport Clubs’ IPO is a timely move that aligns with the national agenda’s goals.”
As the IPO process unfolds, Sport Clubs Company aims to leverage the capital raised to expand its operations and enhance its service offerings. This step is poised to contribute significantly to the Kingdom’s economic diversification efforts, presenting attractive opportunities for local and international investors focused on the burgeoning Middle Eastern markets.
