Saudi Arabia - Saudi Manpower Solutions Company (Smasco) plans to proceed with an initial public offering (IPO) offering 120 million (30%) of its total issued share capital and listing its ordinary shares on the Main Market of the Saudi Exchange.

The Capital Market Authority (CMA) has approved the company’s application for registering its share capital and the offering of 120 million shares. The offering price will be announced following the end of the institutional bookbuilding period. The company also received the Tadawul conditional approval to list on the Main Market.

The offering’s net proceeds will be distributed to the selling shareholders. The company will not receive any part of the proceeds from the offering. The offer shares will be put up for subscription to Individual Subscribers and Participating Parties.

Current shareholders

Following completion of the offering, the current shareholders will collectively own 70% of the company’s share capital. The current shareholders owning 5% or more shares in the company are:

Al Holoul Al Mutakamela Holding Co 70.0%

Rafid Advanced Investments Co 7.5%

Mohammad Abdulaziz Al Habib and Sons Holding Co 5.0%

Malem Al Masa Real Estate Co 5.0%

Immediately after listing, the company is expected to have a free float of 30% of the shares.

With respect to the offering, the company has appointed SNB Capital Company as the Financial Advisor, Lead Manager, Bookrunner and Underwriter.

Receiving agents

Saudi National Bank, Alrajhi Bank and SNB Capital Company have been appointed as receiving agents for retail investors.

Fahad Ali Mohammed Al Mehedb, Chairman of Smasco said: “With rapid economic growth forecast and the requirement for workers intensifying as new projects come on stream, we are prepared for our next phase of growth through our pioneering and innovative approach.

With the IPO, we embark on the next phase of our journey, and we aim to further grow our market position, continue investing in digitalisation to serve our customers in the most effective way and expand into markets and products.”

Abdullah Rakan Altimyat, Chief Executive Officer of Smasco, said: “This IPO represents a significant milestone in our successful journey, evoking pride to all employees and individuals who have been integral to our company since its establishment in 2012. We have built, progressed and scaled Ssmasco as a solid manpower market’s centrepiece where we have recruited over 160,000 workers. We have grown and maintained market leadership through constant innovation and agility which has allowed us to develop rapidly in a very dynamic marketplace.” 

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