Riyadh-Based Tamkeen Human Resources Sets IPO Price At $13.3 Per Share Amid Strong Demand
Tamkeen Human Resources Company, based in Riyadh, has finished the process of gathering orders from big investors for its initial public offering (IPO). The final share price is set at $13.3 (SAR 50) per share, the company announced on Monday.
Final Price
The company set a price range of $12.25 (SAR 46) to $13.3 (SAR 50) per share.
The offering received a lot of attention, with total requests adding up to $14.6 billion (SAR 55 billion), meaning it was oversubscribed by about 138.2 times. This shows strong interest from many different investors.
“Our offering’s high demand from institutional investors shows their trust in our vision and growth plans, which aim to provide value and good returns for shareholders,” said Faris Saleh Al-Hanaki, co-founder and CEO of Tamkeen.
Details of the Offering
The total value of the offering is $105.8 million (SAR 397.5 million). The company’s shares will be listed and traded on the main market of the Saudi Stock Exchange (Tadawul) after meeting all necessary rules and approvals.
The IPO (Initial Public Offering) will include 7,950,000 regular shares, which is 30% of the company’s total shares. These shares are being sold by the current owners.
At first, all the shares will be offered to institutional investors (like large companies and funds) during the order process. If individual investors (regular people) buy shares, the financial advisor and the company may lower the portion for institutional investors to 80%.
The money from the sale will go to the selling shareholders after taking out $6.7 million (SAR 25 million) to cover costs related to the offering.
Saudi Fransi Capital is in charge of managing the offering. It will also handle subscription requests from individual investors through different financial institutions.
Saudi IPO Market in Simple English
In the second quarter of the year, the Middle East and North Africa (MENA) region had 14 companies go public (IPO), raising a total of $2.64 billion. Most of these IPOs were led by Saudi companies, according to a report from EY published in August.
Saudi Arabia was the top performer, with 11 out of the 14 IPOs coming from the country. These IPOs raised $1.6 billion. The largest IPO was by Dr. Soliman Fakeeh Hospital. Other big names included Saudi Manpower Solutions Company, which raised $240 million, and Rasan Information Technology Company, which raised $224 million.
Five of these companies listed on the main Tadawul market, while the other six listed on the smaller Nomu market, raising $85.4 million combined.
The report also said that Saudi Arabia will likely keep up its IPO momentum, with 14 more companies, including Riyad Capital LLC and Arabian Mills for Food Products, planning to go public by the end of the year.
Published: 22nd October 2024
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