SMC prices IPO at SAR 25 per share ahead of Tadawul listing

The Specialized Medical Company (SMC) priced its Tadawul IPO at SAR 25 a pop, the top of its indicative range, after its institutional bookbuilding was 65x oversubscribed, according to a statement (pdf). This implies a total offering size of around SAR 1.9 bn and a market cap of SAR 6.3 bn at listing.

ICYMI- The private healthcare provider is taking a 30% stake to market in a secondary offering. SMC’s IPO retail subscription was pushed back to 15-16 June, with the final allocation of shares slated for Tuesday, 24 June. The company closed the institutional book for its IPO late in May, after identifying an inconsistency across financial disclosures and securing the retrieval of SAR 200 mn (USD 53 mn) in recently paid dividends.

One of the largest IPOs this year: While Flynas’ SAR 4.1 bn listing is expected to secure the title for the biggest IPO in 2025, SMC’s offering is poised to be the third-largest listing on the main market so far this year — landing between Umm Al Qura for Development’s SAR 2 bn IPO in March and Almoosa Health’s SAR 1.7 bn debut in January.

ADVISORS- Our friends at EFG Hermes are quarterbacking the transaction as joint financial advisors, underwriters, and bookrunners, alongside SNB Capital. SNB Capital is also serving as lead manager, with White & Case providing counsel to the issuer. Receiving agents include Al Rajhi Capital, BSF Capital, Alinma Investment, and Riyad Capital, among others.

ALSO IN THE PIPELINE-

• Flynas wrapped up its final allocations last week and is yet to ring the opening bell on Tadawul;
• Companies that have yet to move to the step beyond receiving the CMA’s approval include Ejada Systems, Marketing Home Group, and Dar Al Majed ;
• Companies that tapped banks for potential IPOs include the PIF-backed Saudi Global Ports, Tabreed District Cooling, Medical procurement firm Nupco, Riyad Capital, and BNPL platform Tabby ;
• Alramz Real Estate and Al Othaim Investment announced plans to float a 30% stake on Tadawul this year;
• F&B players Barns, Half Million, Deemah, and Hashi Bashi are said to be sounding out banks for potential debuts on the main market;
• Almosafer is preparing for a public listing on Tadawul by late 2025 or early 2026;
• PIF-backed CloudKitchens is reportedly eyeing an IPO in the Kingdom or the UAE (or both);
• Meal subscription startup Calo is also said to be eyeing an IPO here at home by 2027.