Saudi Arabia Based Medical Company Finalises Public Offering for Individual Investors

Specialized Medical Company (SMC), a prominent healthcare provider in Saudi Arabia, has announced the successful conclusion of its initial public offering (IPO).

The IPO included the completion of the individual investor offering period and the final allocation of shares. This marks a significant milestone for SMC as it continues to expand its comprehensive healthcare services across various specialties.

The institutional book-building period concluded with a final offer price set at SAR25.0 per share. This phase saw an oversubscription rate of 64.7 times the total offered shares.

Following this, individual investors participated from June 15 to 16, 2025, with 317,820 investors placing orders worth SAR542.2 million. This resulted in a subscription coverage of 1.45 times for this tranche.

Investor Allocation and Share Distribution

For individual investors, SMC allocated a minimum of 10 shares each, with remaining shares distributed on a pro-rata basis according to demand size. The average allocation factor was determined to be 63.9%.

As a result of the retail subscription process, institutional investors will receive 60,000,000 shares, accounting for 80% of the total Offer Shares.

The Company for Cooperative Insurance (Tawuniya), acting as the Cornerstone Investor, will not be affected by any clawback provisions.

Tawuniya's final allocation stands at 5,875,000 Offer Shares under all circumstances. Consequently, institutional investors excluding Tawuniya will receive 54,125,000 shares.

Market Positioning and Future Prospects

Bassam Chahine, CEO at SMC, said, "We are proud to have successfully completed our offering amidst evolving market conditions,". He emphasized that this achievement reflects investor confidence in SMC's growth potential and long-term strategy.

Post-listing, SMC will have a free float of 30%, equivalent to 75,000,000 out of its total 250,000,000 shares. The Offer Shares are set to be listed and traded on the Saudi Exchange's Main Market after fulfilling listing requirements with both the Capital Market Authority (CMA) and the Saudi Exchange.

Role of Cornerstone Investor

Tawuniya subscribed for 5,875,000 shares as a Cornerstone Investor. This represents approximately 2.35% of SMC's share capital post-Offering.

Tawuniya is recognized as a major player in Saudi markets and is expected to significantly contribute towards achieving SMC's growth and strategic objectives.

This development reinforces SMC's position as a distinguished healthcare provider and signals an exciting new phase following its listing on the stock exchange.