On Wednesday, May 8, Reuters reported, “Saudi Arabian staffing company SMASCO aims to raise as much as 900 million riyals ($239.99 million) in its initial public offering on Riyadh’s main bourse, it said on Wednesday” About Reuters report and the coverage that Arabian financial media agencies made about SMASCO IPO, here come the details.
Highlighting what Reuters reported: Saudi staffing company SMASCO plans to raise $240 mln in IPO
Reuters added: The indicative price range for the IPO has been set at 7- 7.5 riyals per share, implying a market capitalization of between 2.8-3 billion riyals ($746.7-$800 million).
SMASCO plans to offer 120 million shares, representing a 30% stake. The final pricing will be determined at the end of the book-building period and is expected to be announced on May 19.
As for Maal.com, they highlighted the statements that Mr. Adnan Ali, the CFO of SMASCO, made regarding cash flows:
SMASCO’s CFO, Adnan Ali, said that the company’s cash flows range between 150 and 160 million riyals annually, referring to the size of SMASCO’s workforce, which reached 37 thousand and is expected to grow in the near future. Furthermore, he announced during his interview with CNBC Arabia that the majority of the proceeds from the offering will be allocated to the selling shareholders. He also added that they have recruitment agencies in 40 countries; and that the company is expected to be listed on the main market next June.
SMASCO’s CFO, Adnan Ali, also pointed out that the business sector represents 14% of the company’s market share, while their operations in the Kingdom extend to more than 55 governorates. And noted that SMASCO’s distribution policy is clear, and aims to distribute 75% of their profits annually.
Arabian Business magazine highlighted that the offering indicates a market value between 2.8 billion and 3 billion riyals:
As the price range for the initial public offering is between 7 and 7.5 riyals per share, the company aims to raise between 840 and 900 million riyals from the offering, indicating a market value between 2.8 billion and 3 billion riyals ($746.7-800 million).
SMASCO intends to offer 120 million common stock, representing 30% of the company’s shares owned by current shareholders. The final offering price will be determined after the end of the book-building period, which takes place from May 8 to 14, and is expected to be announced on May 19.
On the other hand, the Al-Arabiya channel shed light on the subscription dates and the surplus refunding date. Al-Arabiya shared more information about SMASCO as a leading company in human resources solutions that possesses the largest market share in the Kingdom. Al-Arabiya also reported:
The period for registering applications and the book-building process begins on May 8, 2024, and continues for 7 days, ending at 5 pm Saudi time on Tuesday, May 14, 2024. The offering period for individual subscribers begins on Sunday, May 26, 2024, and continues for two days, including the closing date of the subscription on May 27, 2024.
According to the prospectus, the final allocation of the offering shares will be announced no later than June 3, 2024, and any excess subscription amounts will be refunded by Monday, June 10, 2024.
Al-Arabiya Sky News shared more information about book building specifically, reporting:
NCB Capital said in a statement on Tadawul that the order book building period begins today, Wednesday, May 8, 2024, and ends on Tuesday, May 14, 2024. Participation in the book-building is limited to categories qualified in accordance with the book-building instructions. Orders and allocation of shares in initial public offerings issued by the Board of the Capital Market Authority.
Last but not least, Al-Eqtisadiah for business and economy news focused on the number of shares; reporting:
The minimum number of shares that can be subscribed for by participating categories is 100,000 shares, while the maximum number is 20 million shares.
After the IPO announcement, more news about SMASCO’s achievements continues to be covered, both locally and internationally. SMASCO IPO, an inevitable step in the business path of a leading company in human resources solutions in the Kingdom of Saudi Arabia, SAMSCO. Follow more news about the IPO from its source, on SMASCO.com.