SMASCO, Saudi Manpower Solutions Company, has set the final offering price for its initial public offering (IPO) at 7.5 riyals per share, with a coverage ratio of 128 times the total offered shares.
This raises the company’s market value to 3 billion riyals (800 million dollars) upon listing.
Details
The set price represents the upper limit of the previously announced price range, which ranged between 7 and 7.5 riyals. This brings the size of the offering to 900 million riyals (240 million dollars).
This follows the completion of SMASCO’s local recruitment company, the process of building the order book for participating categories (institutions), in its initial public offering on the main market of the Saudi Stock Exchange (Tadawul).
So What
Demand in the process of building the order book for companies reached approximately 115 billion riyals (31 billion dollars), reflecting “significant investor interest.”
Individual subscription is expected to begin on May 26th until May 27th, with 12 million shares allocated to them, representing 10% of the total offering shares.
The company offered 120 million shares, equivalent to 30% of its total shares.
Some Context
Adnan Ali, Chief Financial Officer at SMASCO, stated that the company’s cash flows range between 150 and 160 million riyals annually.
He added that their workforce size is 37,000 and they aim to increase it in the coming period.
During his interview with CNBC Arabia, he clarified that the total amount from the offering will go to selling shareholders.
Finally, he noted their intention to distribute 75% of their profits annually.
