pecialized Medical Company (the “Company” or “SMC”), one of the leading healthcare providers in the Kingdom of Saudi Arabia (the “Kingdom”), recognized as a center of excellence delivering comprehensive and integrated healthcare services across a wide range of specialties announces its intention to proceed with an initial public offering (the “IPO” or “Offering”) and the listing of its ordinary shares (“Shares”) on the Main Market of the Saudi Exchange (“Saudi Exchange”).

On 26 March 2025G, the Capital Market Authority (“CMA”) approved the Company’s application for registering its share capital and the offering of 75,000,000 ordinary shares (“Offer Shares”), representing 30% of the Company’s total issued share capital. The offering price will be determined at the end of the institutional bookbuilding period.

The Offer Shares will be offered for subscription to individual and institutional investors, including institutional investors outside the United States in accordance with Regulation S under the US Securities Act of 1933G, as amended (“US Securities Act”). The Offering’s net proceeds will be distributed to the Selling Shareholders. The Company will not receive any part of the Offering Proceeds.

COMPANY OVERVIEW

SMC was founded in 1999 and is one of Riyadh’s leading multi-specialty private healthcare providers, with a 25-year track record of delivering high-quality, patient-centric medical care.

The Company operates two state-of-the-art hospitals in Riyadh—SMC 1 on King Fahd Road and SMC 2 on King Abdullah Road—with a combined capacity of 578 inpatient beds and 266 outpatient clinics, and is currently in the process of opening 60 new clinics after having decommissioned LTC beds.

SMC is strategically expanding into Northern Riyadh, where rapid urban development is creating strong demand for healthcare services. With three additional hospitals, SMC is expected to capture over 25% of private hospital capacity in the area, establishing a leading position in an underpenetrated region with limited existing healthcare infrastructure – one that is set to become Riyadh’s new urban hub. Once operational, the new facilities are expected to more than double the Company’s current capacity to approximately 1,276 beds and 770 outpatient clinics.

SMC has a skilled medical team comprising 443 doctors, 960 nurses, and 494 ancillary staff, which is essential to the delivery of its diverse and specialized healthcare services. The Company operates Centers of Excellence in key disciplines including:

Cardiology: Over 2,000 interventional procedures performed annually.
General and Specialized Surgery: More than 24,000 general surgeries conducted each year, including over 400 complex spine procedures.
Oncology: Supports 15,000+ outpatient visits annually and manages 4,000 active oncology patients.
Nephrology: Delivers more than 11,000 dialysis sessions annually. SMC was the first hospital in Saudi Arabia to treat kidney stones in patients younger than 18 months, highlighting its surgical expertise in pediatric care.
Ophthalmology: Conducts over 5,000 eye surgeries and approximately 50 corneal transplants per year, making SMC one of the few private hospitals offering such advanced care.
IVF and Fertility: High-performing center with more than 4,500 annual visits and approximately 2,000 specialized procedures.
Laboratory Services: Conducting more than 1,600,000 laboratory tests annually, supported by the Company’s advanced technological infrastructure.

SMC maintains a strong reputation for quality and clinical excellence, supported by accreditations from leading local and international healthcare bodies, including the Saudi Central Board for Accreditation of Healthcare Institutions (CBAHI), College of American Pathologists (CAP), Association for the Advancement of Blood & Biotherapies (AABB), Saudi Commission for Health Specialties, Saudi Center for Organ Transplantation and Healthcare information and Management Systems Society (HIMSS).

SMC also continues to lead in healthcare technology adoption, including a proprietary mobile app and early adoption of AI in diagnostics and lab result analysis to streamline patient journeys and enhance operational efficiency. During the nine-month period ended 30 September 2024G, its proprietary in-house developed mobile application had 83,000 new users, with 62% of appointments booked digitally. As a result, patient wait times have been reduced by 50%, and new digital initiatives like telemedicine are broadening access to care beyond hospital walls.

SMC has delivered robust growth and sustained margin enhancement, driven by a strategic shift toward more profitable specialties, increased focus on outpatient services, and the successful ramp-up of SMC 2 – King Abdullah Road:

Net revenue grew from SAR 1,053 million in 2021 to SAR 1,440 million in 2024 (2021–24 CAGR: 11.0%), supported by a continued focus on high-yield services and the ramp up of SMC 2.
Post-IFRS EBITDA increased from SAR 181.1 million in 2021 to SAR 333.1 million in 2024 (2021–24 CAGR: 22.5%), with EBITDA margins expanding from 17.2% in 2021 to 23.1% in 2024
Net profit rose from SAR 56.0 million in 2021 to SAR 185.2 million in 2024 (2021–24 CAGR: 49.0%), with margins more than doubling from 5.3% to 12.9% in 2024—reflecting operational strength and effective cost management.

SMC’s growth is driven by a seasoned management team with over 50 years of combined healthcare experience, supported by a strong, long-serving leadership group and a reputed board of directors focused on strategic execution and long-term value creation.

HEALTHCARE DELIVERY AT SCALE

SMC is strategically positioned at the forefront of Riyadh’s evolving healthcare landscape. As the capital and largest city of Saudi Arabia, Riyadh is at the heart of the Kingdom’s Vision 2030 economic and social transformation. Rapid population growth, major infrastructure projects, and large-scale investments in healthcare are driving a significant increase in demand for high-quality healthcare services. Between 2023G and 2035G, the population of Riyadh is expected to expand from 7.3 million to 9.5 million, and approximately 1,500 additional hospital beds are expected to be needed to meet the Kingdom’s targeted healthcare coverage.

Despite these investments, the gap between supply and demand for hospital beds persists, particularly in an up and coming area such as Northern Riyadh, which is experiencing rapid urbanization. SMC’s expansion plan—comprising three new hospitals in high-growth, strategically selected locations—directly addresses this need. Once operational, these hospitals are expected to allow SMC to capture over 25% of the new private sector hospital capacity in Northern Riyadh, positioning the Company as a leading private healthcare provider in one of the capital’s fastest-growing corridors.

In parallel, the Saudi government’s Health Sector Transformation Program and Public-Private Partnership (PPP) initiatives are accelerating the shift toward private sector healthcare delivery. SMC is well-poised to benefit from this transition, supported by its strong brand reputation, robust relationships with major insurance providers, and proven ability to deliver complex, high-quality care across both inpatient and outpatient services. Its emphasis on expanding outpatient clinics aligns closely with the Kingdom’s shift toward value-based, preventative healthcare models—enhancing accessibility, improving health outcomes, and optimizing operational efficiency. SMC’s operational footprint demonstrates its scale and leadership across the full healthcare value chain. The Company performs more than 24,000 surgeries annually, conducts over 1.6 million laboratory tests, and served more than 1 million patients in the first nine months of 2024.

By leveraging its scale, operational excellence, strong clinical capabilities, and innovative approach to patient care, SMC is exceptionally well positioned to meet the growing healthcare demands of Riyadh’s rapidly expanding population and to play a leading role in the future of private healthcare provision in Saudi Arabia.

Bassam Chahine, Chief Executive Officer of SMC

“For over 25 years, SMC has been proud to serve the Riyadh community, building a legacy as one of the capital’s trusted private healthcare providers. Our journey has been defined by clinical excellence, operational excellence, and a commitment to delivering world-class medical care tailored to the needs of our growing population.

Today, as Riyadh expands northward and Saudi Arabia’s healthcare sector evolves under Vision 2030, we are entering an exciting new chapter. Our planned listing on the Main Market of the Saudi Exchange will enable us to accelerate our growth strategy – doubling our capacity with three new hospitals in Northern Riyadh, further strengthening our role in expanding access to high-quality healthcare in the Kingdom. We look forward to scaling with purpose, deepening our impact, and continuing to redefine healthcare delivery for future generations.”

Hani Charani, Chief Financial Officer of SMC

“SMC has demonstrated consistent financial strength, marked by double-digit revenue growth, expanding margins, and prudent capital management. Our ability to grow sustainably while maintaining operational efficiency underscores the resilience of our business model
The IPO will provide us with flexibility to accelerate our strategic agenda, invest in capacity, technology, and innovation, and strengthen our leadership in one of the region’s most dynamic healthcare markets. We are entering the public markets with ambition, resilience, and clear visibility on long-term growth.”

KEY INVESTMENT HIGHLIGHTS

1. Robust Macro Environment and Favorable Demographics Supported by KSA’s Vision 2030

Saudi Arabia’s healthcare sector is poised for sustained growth, driven by macroeconomic diversification under Vision 2030. With healthcare demand fueled by population growth—from 36.9 million in 2023 to an expected 42.8 million by 2035—and the rollout of mandatory insurance, private operators like SMC are well-positioned to benefit from an expanding market expected to grow at a 4.6% CAGR over the same period.

2. A well-established position in Riyadh, enhanced by excellent accessibility to patients, makes the company one of the leading healthcare providers in northern Riyadh.
SMC is deeply embedded in Riyadh, a city undergoing structural reforms and rapid infrastructure development, with large-scale urban expansion moving northward and creating significant demand for high-quality healthcare services. With Riyadh’s population forecast to rise from 7.3 million in 2023 to 9.4 million by 2035, SMC is capitalizing on this demographic shift by developing three hospitals in Northern Riyadh. Once operational, SMC is expected to hold the largest share of more than 25% of private hospital capacity in this high-growth area, solidifying its leadership in a region with limited existing infrastructure and surging demand.

3. Comprehensive Services Covering the Entire Healthcare Value Chain
SMC delivers full-spectrum care across inpatient and outpatient services, offering advanced specialties such as oncology, orthopedics, IVF, ophthalmology, and organ transplants. It operates the Kingdom’s first licensed private-sector corneal transplant center and performs over 24,000 surgeries annually. SMC’s nephrology center conducts more than 11,000 dialysis sessions each year, while its cardiology department carries out over 2,000 interventional procedures. In ophthalmology, SMC completes more than 5,000 eye surgeries annually, including around 50 corneal transplants. The Company also maintains a leading position in fertility care, performing approximately 2,000 IVF procedures per year. Collectively, SMC’s hospitals serve more than one million patients annually, underscoring its position as one of the largest and most comprehensive integrated healthcare providers in Riyadh.

4. Team of Top-Tier Healthcare Professionals and a Seamless Patient Experience Enabled by Advanced Tech Capabilities
SMC’s 1,900+ medical professionals—including, as of September 2024, 443 doctors, 960 nurses, and 494 medical ancillary staff—deliver clinical excellence, reflected in standout metrics such as a 0.08% surgical site infection rate and a 99.6% cardiac catheterization success rate. The Company has also built one of the most advanced digital ecosystems in the sector. Its in-house mobile application, used by 83,000 patients, accounts for 62% of all bookings, up from 31% in 2020. SMC is also an early-adopter of AI and has integrated it to support diagnostics and lab result interpretation.

5. Consistently Improving Financial Performance; Growing Revenues, Expanding Margins and a Healthy Balance Sheet
SMC has achieved consistent revenue growth, with a 2021–2023 CAGR of 14%, reaching SAR 1.37 billion in 2023 and SAR 1.1 billion for 9M 2024. Net profit grew at a 73.6% CAGR over the same period, with margins increasing from 5.3% in 2021 to 14.3% in 9M 2024. The Company maintains a strong balance sheet and has demonstrated market-leading cash flow conversion, supported by EBITDA margins rising from 17.2% in 2021 to 24.2% in 9M 2024, driven by (i) a higher focus on outpatient services, (ii) a strategic shift towards higher-margin acute specialties and (iii) a centralized and established infrastructure that unlocks operating leverage benefits and supports scalable growth.

6. Clearly Defined & Actionable Growth Plans Set to Solidify Market Presence
SMC is executing an expansion plan with three hospitals currently under development—SMC 3 – Northern Ring Road, SMC 4 – Al Khuzam Suburb – Prince Faisal Bin Bander Road, and SMC 5 — Al Malqa – with debt financing already secured. These projects are expected to more than double bed capacity from 578 to approximately 1,275 by 2029, reinforcing SMC’s market position in Northern Riyadh, a high-growth region with limited existing healthcare infrastructure. In addition to its hospital expansion plans, SMC aims to operate a mental health facility under the Kingdom’s first healthcare PPP, developed in partnership with Dr. Ebel Kliniken International GmbH and Health Gate. The project, set to launch in 2026, is designed to address the significant shortage of mental health services in Saudi Arabia and strengthen the sector’s capacity to meet growing national demand.

7. Long Serving and Distinguished Team Supported by a Strong Shareholder Base and a Reputed Board of Directors
Led by a seasoned management team with over 50 years of combined healthcare experience, SMC has a track record of growth and resilience. The CEO, Mr. Bassam Chahine, has 30 years of experience in the sector, supported by the CFO, Mr. Hani Charani, with 20 years of financial expertise. The Company’s board includes strategic shareholders and independent directors with deep sectoral and governance expertise, reinforcing SMC’s commitment to excellence and long-term value creation.

HIGHLIGHTS OF THE OFFER

The Company has appointed EFG Hermes KSA and SNB Capital Company (“SNB Capital”) as the joint financial advisors (hereinafter referred to as the “Financial Advisors”), bookrunners (the “Bookrunners”), and underwriters (the “Underwriters”) and appointed SNB Capital as the lead manager (hereinafter referred to as the “Lead Manager”) in respect to the Offering described herein.

The Company has also appointed SNB Capital, SAB Invest, Al Rajhi Capital, BSF Capital, Alinma Investment, Riyad Capital, Al Jazira Capital, Alistithmar Capital, ANB Capital, Derayah Financial Company, Yaqeen Capital, Al Khabeer Capital, Albilad Capital, GIB Capital and Sahm Capital to act as receiving agents (collectively, the “Receiving Agents”) for retail investors.

The Offering will consist of 75,000,000 ordinary shares (the “Offer Shares”), representing 30% of the Company’s total issued share capital.
The Offer Shares will be offered for subscription to Individual Subscribers and Participating Parties (as defined below).
A maximum of 75,000,000 ordinary shares, representing 100% of the offer shares, will be allocated to the participating parties initially, with the final allocation being made after the end of the retail subscription period.
In the event of sufficient demand from retail investors, the Financial Advisors shall have the right to reduce the number of Offer Shares allocated to Participating Parties to a minimum of 60,000,000 Offer Shares, representing 80% of the total Offer Shares.
The final Offering price will be determined after the institutional bookbuilding period is completed.
The Offer Shares will be listed and traded on the Saudi Exchange’s Main Market following the completion of the Offering and listing formalities with both the CMA and the Saudi Exchange.

Subscription for the Offer Shares is restricted to the following groups of investors:

Tranche (A): Participating Parties: This tranche includes categories that are entitled to participate in the book-building process. These categories include investment funds, qualified foreign companies and institutions, GCC corporate investors and other foreign investors under swap agreements. The number of shares provisionally allocated to the Participating Parties is 75,000,000 Offer Shares, representing 100% of the total Offer Shares. The final allocation will take place after the end of the individual subscription period. In the event there is sufficient demand by Individual Subscribers (as defined under Tranche (B) below), the Financial Advisors shall have the right to reduce the number of Offer Shares allocated to Participating Parties to be a minimum of 60,000,000 ordinary shares representing 80% of the Offer Shares. The number and percentage of the Offer Shares to be allocated to the Participating Parties will be determined by the Financial Advisors, in coordination with the Company.

Tranche (B): Individual Subscribers: This tranche comprises Saudi natural persons, any non-Saudi natural person who is resident in the Kingdom, or GCC nationals who have a bank account with one of the Receiving Agents and are entitled to open an investment account with a Capital Market Institution (collectively referred to as the “Individual Subscribers”). A maximum of 15,000,000 Offer Shares, representing 20% of the total Offer Shares, will be allocated to Individual Subscribers. In the event that Individual Subscribers do not subscribe in full for the Offer Shares allocated thereto, the Lead Manager may reduce the number of Offer Shares allocated to Individual Subscribers in proportion to the number of Offer Shares to which they have subscribed.