Bahrain-based private-equity firm Investcorp Bank BSC is preparing an initial public offering of Saudi Arabia’s Leejam Sports Co., which operates gym chain Fitness Time, according to three people familiar with the matter.

Leejam will probably sell a 30 percent stake to the public and could raise as much as 1 billion riyals ($267 million), two of the people said, asking not to be identified as the information is private. A financial adviser for the sale will be appointed soon, the people said.

Investcorp bought a 25 percent stake in Leejam in 2013, which at the time was its third investment in Saudi Arabia. Leejam operates 120 gyms across Saudi Arabia under the Fitness Time brand, according to information on its website.

Several companies are still pursuing IPOs in Saudi Arabia, even after the country’s benchmark stock index had its worst year in seven in 2015. The Tadawul, as the Arab world’s largest bourse is known, has approached banks about an IPO of itself in 2018, people familiar told Bloomberg last week, while shares in Middle East Healthcare Co. begin trading today. Al Yamamah Steel Industries said yesterday it plans a share sale starting at the end of next month.

A spokesman for Investcorp declined to comment and a spokesman for Leejam wasn’t immediately available to comment.

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