Homegrown labor agency Tamkeen HR is taking a 30% stake to Tadawul’s main market in a secondary share sale, it said in a prospectus (pdf). The company lined up Capital Market Authority approval for the move earlier this month.

Institutional investors will be able to subscribe to 100% of the offering, booking a maximum of around 1.3 mn shares and a minimum of 100k shares each. Meanwhile, retail investors may receive up to 20% of the shares on offer if there is sufficient demand. Each retail investor would be allowed to subscribe for a maximum of 250k shares, and a minimum of 10 shares.

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Use of proceeds + lockup: Proceeds from the sale will be pocketed by selling shareholders on a pro-rata basis, after some SAR 25 mn are used to cover IPO-related expenses, according to the prospectus. The firm will not receive any of the offering’s proceeds. Substantial shareholders will not be able to sell down their positions for a period of six months starting from the first day of trading.

The timeline:

  • Institutional investors will be able to place their orders starting Sunday, 13 October until Thursday, 17 October;
  • The two-day retail subscription process is slated to start on Tuesday, 5 November;
  • The final allocation of shares will take place on Monday, 11 November;
  • Any excess subscription fees will be refunded by Wednesday, 13 November.

ADVISORS- Saudi Fransi Capital is quarterbacking the transaction as lead manager, financial advisor, book-runner and underwriter, with Stat Law Firm providing counsel to the issuer. Meanwhile PwC will act as financial due diligence advisor and Euromonitor International is stepping in as market study consultant, and Baker Tilly MKM as auditor. Receiving agents include Saudi Fransi Capital, Al Rajhi Bank, SNB Capital, Riyadh Capital, Albilad Investment, and others.

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