Saudi Manpower Solutions Company announces the completion of offering period for individual investors and final allotment of shares

SAUDI MANPOWER SOLUTIONS COMPANY (“SMASCO” or the “Company” or the “Group”) the leading manpower solutions company in the Kingdom of Saudi Arabia (the “Kingdom”), announces the successful completion of the Retail Investor offering period and the Final Allotment of Shares in relation to its initial public offering (the “IPO” or “Offering”).

Following the successful completion of the institutional book-building period which set the Final Offer Price at SAR 7.50 per share and resulted in an oversubscription coverage of 128x of the total offered shares, the individual investors offering took place from 26 to 27 May 2024G. The number of Offer Shares that were allocated to Individual Investors was 12,000,000 shares, representing 10% of the total offering. The offering saw 1,065,437 individual subscribers place orders totalling SAR 1,176.81 million, reflecting a subscription coverage of 13x of the offered shares in this tranche.

The Company allocated a minimum of 10 shares to each individual investor. The remaining Offer Shares will be allocated on a pro-rata basis based on demand size to the remaining demand with an average allocation factor of 0.92007%.

OFFER DETAILS

• The Final Offer Price for the Offering has been set at SAR 7.50 per share, indicating the Company’s market capitalization of SAR 3 billion (USD 800 million) at listing.
• The total size of the Offering is SAR 900 million (USD 240 million).
• The Offering consists of a secondary offering of 120,000,000 ordinary shares (the “Offer Shares”) representing 30% of the Company’s total issued share capital). 100% of the Offer Shares have been provisionally allocated to certain institutional investors (the “Participating Parties”) that took part in the book-building process.
• Following completion of the Offering, the current shareholders will collectively own 70% of the Company’s share capital.
• Following listing, the Company will have a free float of 30% of its shares.
• The Company’s shares will be listed and traded on the Saudi Exchange’s Main Market following the completion of the Offering and listing formalities with both the CMA and the Saudi Exchange.
• The net proceeds of the Offering will be received solely by the selling shareholders.