Saudi Arabian sports and fitness business Leejam Sports Co. is to hire Samba Capital to advise it on a stock market flotation in the Kingdom, sources aware of the matter told Reuters. While no mandate has been signed yet, two sources said the investment banking arm of Samba Financial Group was told that it would be awarded the contract to list around 30% of the firm. Many of the shares put up for sale will likely to come from Bahraini alternative investment firm Investcorp, according to the two sources plus a further source. Investcorp acquired a 25% stake in the firm in 2013. The sources were unclear on when the initial public offering would take place or how much the company would be looking to raise from the sale. Investcorp also owns part of Saudi gold and jewellery maker L'azurde, which was granted approval this week to go public by the stock market regulator in an offering set to be concluded in mid-June. Private equity investors have been heavily targeting retail businesses in Saudi Arabia in recent years, seeking to tap into the increasing wealth of a population, which is 70% under 30 years old. Shareholders of Saudi rival fitness chain Bodymasters received initial interest from four potential buyers ahead of a potential SAR500mn (USD133.3mn) sale later this year, sources told Reuters in January. The sector has begun to show signs of suffering though as the impact of lower oil prices on the Kingdom's economy feeds through into consumer spending: retail names predominantly posted big profit drops in the first quarter. (Reuters)