Riyadh-based Saudi Manpower Solutions (Smasco) closed the institutional book for its IPO on Tadawul’s main market with a 128x oversubscription rate, according to a press release (pdf). The institutional offering drew in orders with a combined SAR 115 bn. The company is taking a 30% stake to market in a secondary share sale.

Smasco priced its IPO at the top end of its initial range, with shares set to start trading at SAR 7.50 apiece, giving the recruitment firm a market cap of SAR 3 bn at listing. The pricing will see Smasco raise some SAR 900 mn in IPO proceeds.

What’s next: Retail investors will be able to place their orders on 10% of the offering for a two-day period starting Sunday, 26 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.

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.

SAUDI IPO PIPELINE AT A GLANCE-

Among the transactions now in the market or expected soon:

  • Fakeeh Care Group has priced its IPO at the top range after strong demand from institutional investors as it looks to become the largest IPO so far this year;
  • Riyadh-based aluminum products maker Al Taiseer Group Talco Industrial (Talco) plans to sell a 30% stake;
  • Fintech startup Rasan is set to sell a 30% stake, with subscription period for institutional investors wrapping up over the weekend;
  • Water treatment outfit Miahona has priced its IPO at the top of the range after recording strong investor appetite;
  • Nupco — a unit of the PIF — has reportedly tapped Rothschild & Co as financial advisor for its potential Tadawul IPO;
  • Budget airline Flynas is reportedly looking to go public this year;
  • PIF-backed lender Riyad Bank is considering the listing of its investment banking arm Riyad Capital;
  • Hotels and resorts operator Boudl has filed to go public;
  • Fourth Milling Company will list before the end of June;
  • Singapore’s Olam Group is mulling the IPO of its Olam Agri subsidiary on Tadawul;
  • Hypermarket operatorLulu is said to be eyeing a dual listing on Tadawul and ADX;
  • Aster DM Healthcare looks set to spin off its GCC assets and seek a dual listing on Tadawul and in the UAE.
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