Saudi Manpower Solutions Soars on Strong Demand, Prices Shares at Offering Maximum

SAUDI MANPOWER SOLUTIONS COMPANY (“SMASCO” or the “Company” or the “Group”) the leading manpower solutions company in the Kingdom of Saudi Arabia (the “Kingdom”), announces the successful completion of the institutional bookbuilding process and the determination of the final offer price (the “Final Offer Price”) for its initial public offering (the “IPO” or “Offering”) on the Main Market of the Saudi Exchange. 

Following a highly successful bookbuilding process, the Final Offer Price has been set at SAR 7.5 per share, with a market capitalization of SAR 3 billion (USD 800 million) at listing. The price range for the Offering was set at SAR 7 to SAR 7.5. 

The institutional bookbuilding process generated an order book of around SAR 115 billion (USD 31 billion) and was 128x oversubscribed, indicating strong investor demand.  

The retail subscription period will take place from Sunday, 18/11/1445H (corresponding to 26/05/2024G) to Monday at 5:00 PM KSA time, 19/11/1445H (corresponding to 27/05/2024G). Individual investors will subscribe at the Final Offer Price. 

Abdullah Rakan Altimyat, Chief Executive Officer of SMASCO commented: “We are delighted to have secured strong institutional investor support for our IPO and to announce the final offer price following an exceptionally robust bookbuilding process. This support reflects the strong confidence investors have in our strategic direction, operational excellence and our role as a leader in the manpower solutions sector in the Kingdom and has resulted in an order book 128x oversubscribed. Our success in building a leading market share driven by constant innovation to take advantage of the expanding market in which we operate positions us  for further future growth and as the preferred choice for both corporate and individual manpower solutions across the Kingdom.“

CONFIRMATION OF OFFER DETAILS

• The Final Offer Price for the Offering has been set at SAR 7.5 per share, indicating the Company’s market capitalization of SAR 3 billion (USD 800 million) at listing.
• The total size of the Offering is SAR 900 million (USD 240 million). 
• The Offering will consist of a secondary offering of 120,000,000 ordinary shares (the “Offer Shares”) representing 30% of the Company’s total issued share capital). 100% of the Offer Shares have been provisionally allocated to certain institutional investors (the “Participating Parties”) that took part in the book-building process. The Financial Advisor may, in coordination with the Company, reduce the number of Offer Shares allocated to Participating Parties to 108,000,000 Offer Shares, representing 90% of total Offer Shares to accommodate individual subscriber demand. The final number of Offer Shares allocated to the Participating Parties will be clawed-back accordingly based on subscriptions from individual investors.
• Following completion of the Offering, the current shareholders will collectively own 70% of the Company’s share capital. 
• Following listing, the Company will have a free float of 30% of its shares.
• A maximum of 12,000,000 Offer Shares, representing 10% of the total Offer Shares, will be allocated to individual subscribers.
• The Company’s 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.
• The net proceeds of the Offering will be received solely by the selling shareholders. 

OFFERING TIMETABLE

For more information about the IPO, please visit: https://ipo.smasco.com/