{"id":85660,"date":"2024-04-30T00:00:00","date_gmt":"2024-04-30T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2024\/04\/30\/saudi-manpower-solutions-issues-a-prospectus-for-its-tadawul-ipo\/"},"modified":"2024-04-30T00:00:00","modified_gmt":"2024-04-30T00:00:00","slug":"saudi-manpower-solutions-issues-a-prospectus-for-its-tadawul-ipo","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2024\/04\/30\/saudi-manpower-solutions-issues-a-prospectus-for-its-tadawul-ipo\/","title":{"rendered":"Saudi Manpower Solutions issues a prospectus for its Tadawul IPO"},"content":{"rendered":"

Saudi Manpower Solutions (<\/strong>Smasco<\/a><\/strong>) plans to take a 30% stake to market <\/strong>through a <\/strong>secondary share sale of 120 mn shares on the main market Tadawul<\/strong>, according to the company\u2019s prospectus (pdf)<\/a>. The recruitment company is yet to set a price range for the IPO.<\/p>\n

The details:<\/strong> Institutional investors will provisionally be able to subscribe to 100% of the offering\u2019s shares, while the financial advisor has the right to allocate 10% of the offering to retail investors \u201cif there is sufficient demand.\u201d Each institutional investor can subscribe to up to 20 mn shares and a minimum of 100k shares, while each individual investor can subscribe to a maximum of 2 mn and a minimum of 10 shares.<\/p>\n

Use of proceeds: <\/strong>The Riyadh-based company\u2019s selling shareholders will take the transaction\u2019s proceeds home after covering transaction-related expenses \u2014 estimated at SAR 45 mn. All the proceeds will be divided between the selling shareholders on a pro rata basis.<\/p>\n

Meet <\/strong>Smasco: <\/strong>The company provides recruitment solutions covering the full hiring cycle from contracting to facilitating the issuance of residency, driving license and medical and social ins. documents. The Riyadh-based company also helps businesses and the public sector hire on short-term contracts for seasonal jobs through a service it calls \u201cmawsemiah.\u201d<\/p>\n

The investment case: <\/strong>Smasco is asset light, has digitized its operations, and runs with no debt. It is a \u201cfirst-mover in the industry,\u201d the prospectus claims, \u201c introducing on-demand hourly services, advanced mobile applications, dynamic pricing models, specialised services and strategic licensing and branding initiatives.\u201d It serves both corporate and individual demand and is positioned to grow as the government looks to create the conditions for 2 mn new jobs through 2030. <\/p>\n

By the numbers: <\/strong>Smasco\u2019s top line was largely unchanged in 9M 2023 compared to the same year last year and its profit from ongoing operations declined 30% to SAR 121 mn, the prospectus says, citing reviewed (not audited) financial statements. Argaam<\/a> separately reports that Smasco\u2019s net income rose 10.7% y-o-y to SAR 166.3 mn in 2023, while its revenues dipped 0.7% y-o-y to SAR 1.8 mn,.<\/p>\n

Smasco has five subsidiaries <\/strong>including tech-focused VC Saneem Investment Company, Saudi Logistics Services Company, Terhab Customer Experience, Romoz Development For Communications and Information Technology, and it is a 100% indirect shareholder in the Business Solutions Center. The company\u2019s website says it has facilitated the recruitment of 160k workers at 4k entities across the Kingdom.<\/p>\n

Shareholding structure: <\/strong>Majority shareholder Al Holoul Al Mutakamela Holding<\/a> will hold a 47.8% stake in the company after the offering, down from 70%, Rafid Advanced Investments Company\u2019s shareholding will inch down to 4.8% (from 7.5% before the offering), while Mohammed Abdulaziz All Habib and Sons Holding Company and Al Masa Real Estate Company will each holding 3.5% (down from 5.0% each) after the offering. The selling shareholders will not be able to execute any transactions on their shares for a period of six months starting from the first trading day.<\/p>\n

The timeline:<\/strong><\/p>\n