Smasco Set To Float 30% Of Issued Share Capital In Upcoming IPO

Saudi Manpower Solutions Company (Smasco) has announced its plans for an initial public offering (IPO) that will see 120 million shares, constituting 30% of its total issued share capital, offered to the public. This move will place its ordinary shares on the Main Market of the Saudi Exchange, following approval from the Capital Market Authority (CMA). The offering price is set to be determined after the conclusion of the institutional bookbuilding period. Smasco has also secured conditional approval from Tadawul for listing on the Main Market.

The net proceeds from the offering are designated for distribution among the selling shareholders, with Smasco not retaining any portion of the proceeds. The subscription opportunity extends to Individual Subscribers and Participating Parties. Post-offering, current shareholders will retain a collective 70% stake in Smasco. Notably, significant shareholders include Al Holoul Al Mutakamela Holding Co with a 70% stake, Rafid Advanced Investments Co holding 7.5%, and both Mohammad Abdulaziz Al Habib and Sons Holding Co and Malem Al Masa Real Estate Co each owning 5%.

Upon completion of the IPO, Smasco is expected to achieve a free float of 30% of its shares. SNB Capital Company has been appointed as the Financial Advisor, Lead Manager, Bookrunner, and Underwriter for this offering. Additionally, Saudi National Bank, Alrajhi Bank, and SNB Capital Company will serve as receiving agents for retail investors.

Fahad Ali Mohammed Al Mehedb, Chairman of Smasco, expressed optimism about the company's growth prospects in light of rapid economic expansion and increasing demand for workers due to new projects. He highlighted the IPO as a pivotal step towards further market growth, continued investment in digitalization, and expansion into new markets and products.

Abdullah Rakan Altimyat, Chief Executive Officer of Smasco, reflected on the IPO as a landmark achievement in the company's history since its inception in 2012. He praised the company's development into a key player in the manpower market, having recruited over 160,000 workers. Altimyat attributed Smasco's success and market leadership to ongoing innovation and adaptability in a dynamic market environment.