K-12 school operator Almasar Education gained 18.4% to SAR 23.1 per share on its first day of trading on Tadawul, bucking a wider trend of downbeat main market debuts amid tougher liquidity conditions on the Saudi bourse. The stock traded between a high SAR 23.1 and a low of SAR 18.33, briefly dipping below its final offer price of SAR 19.50, before settling at the top end of that range. Around 21.4 mn shares changed hands across 41k trades worth SAR 450.4 mn.

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Usual caps apply: Almasar’s shares can move within a 30% band on debut, with a 10% static limit in place for the first three sessions. From day four onward, volatility is capped at 10% as circuit breakers kick in.

A strong open after a heavily oversubscribed IPO: The K-12 school operator’s strong debut follows a well-covered offering, with the institutional tranche closing 102.9x oversubscribed and the retail portion 1.21x covered. The company floated a 30% stake in a fully secondary offering from its then-sole owner Amanat, raising SAR 599 mn. This places it around mid-table among this year’s Tadawul listings by proceeds, sitting just behind United Carton Industries (SAR 600 mn) and ahead of Entaj (SAR 450 mn).

IN CONTEXT- Almasar’s debut lands in a market that’s been under heavy pressure, with Tadawul’s benchmark index TASI sliding 9.1% in November to about 10.6k points dragging its YTD loss to roughly 12% — its sharpest monthly drop since mid-2022 and steepest YTD slump in a decade. Analysts say the pullback reflected liquidity pressures, capital rotating into IPOs, cautious positioning, and a rapid unwinding of speculative wagers after mixed signals on foreign-ownership caps.

Why it bucked the trend: Almasar came to market with a set of tailwinds few other issuers enjoyed. The school operator had a visible expansion pipeline at a time when defensives held up far better than cyclicals in a liquidity-strained market. Its SAR 599 mn float was also fully secondary, meaning no new supply hit the market, and the size was manageable relative to current liquidity conditions. Together, that may have helped strong demand translate more cleanly into post-listing support and gave Almasar a clearer runway than most recent Tadawul debuts.

What to watch: The company plans to deploy SAR 115 mn in capex in Saudi Arabia to expand its special-needs daycare footprint and open 15 new schools and centers over the next two years, 50-70% of which is already invested. CEO Fadi Habib has also signaled ambitions to scale higher-education offerings in KSA, mirroring the growth trajectory of its domestic portfolio, including Middlesex University Dubai.

ADVISORS- Our friends at EFG Hermes KSA co-managed bookbuilding alongside SNB Capital who is quarterbacking the transaction as financial advisor, bookrunner, and underwriter with Clifford Chance acting as counsel to the issuer. Baker Mackenzie is advising the bookrunner, while PwC is handling financial and tax due diligence. Euromonitor International provided market research, and Deloitte is acting as auditor.

Amanat may not be done listing in Saudi: Almasar’s strong debut could also bolster its parent company’s appetite for a second Saudi listing. The Dubai-based firm was previously reported to have mandated EFG Hermes and First Abu Dhabi Bank (FAB) to explore an IPO of its healthcare arm — a transaction that could raise around USD 200 mn.

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