Saudi Manpower Solutions Company (SMASCO), a leading manpower solutions company in Saudi Arabia, has announced the final offer price for its upcoming initial public offering (IPO).
The final offer price has been set at SAR 7.5 per share, which would lead the company to achieve a market capitalisation of SAR 3 billion ($800 million) at listing.
The offer price was set at the top of its previously announced range of SAR 7 to SAR 7.5, after a successful institutional book-building process, which generated an order book of around SAR 115 billion ($31 billion) and was oversubscribed 128 times, the company revealed.
“We are delighted to have secured strong institutional investor support for our IPO and to announce the final offer price following an exceptionally robust book-building process,” said Abdullah Rakan Altimyat, Chief Executive Officer of SMASCO. “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.”
Last month, the company confirmed its plans to offer 120 million shares, or 30% of the company’s share capital, on the Saudi Exchange.
The planned listing received approval from the country’s Capital Markets Authority (CMA) last month. The offering’s net proceeds will be distributed to the selling shareholders, with SMASCO not receiving any part of the proceeds from the offering, the company said in a statement.
The retail subscription period will take place from May 26 to May 27.
Established in 2012G, SMASCO’s activities include administrative services, support services, employment agency activities, and temporary employment agency activities. The company offers end-to-end services and holds a leading market share of 14% – 16% as of 2022.
