Saudi Manpower Solutions (Smasco) is guiding on a price range of SAR 7.00-7.50 per share for its IPO on the main market, according to a statement (pdf). The company is taking a 30% stake to market in a secondary share sale. That range means Smasco could have a post-IPO market cap of as much as SAR 3 bn, and could see it raise up to SAR 900 mn from the IPO, according to our calculations.

Subscription to the IPO opened yesterday for institutional investors and will wrap up next Tuesday, 14 May. Institutional investors are being allotted 100% of the offering, but the financial advisor can reduce that to 90% and allocate 10% of the offering to retail investors “if there is sufficient demand” during the retail subscription window, which will be open on Sunday and Monday, 26-27 May.

What’s next? The final price of the offering will be announced on Sunday, 19 May. The final allocation of shares will take place on Monday, 3 June, with any excess subscription fees set to be refunded by Monday, 10 June.

Use of proceeds: An estimated SAR 45 mn is earmarked for transaction-related expenses, after which the selling shareholders will divide the rest of the proceeds on a pro rata basis.

ADVISORS- SNB Capital is quarterbacking the transaction as the sole lead manager, financial advisor, bookrunner, and underwriter. Stat Law Firm is legal advisor, EY is the financial due diligence advisor, and Arthur D. Little Saudi Arabia is acting as market consultant. The receiving agents are SNB, SNB Capital and Al Rajhi Bank.

Tags: