Tamkeen Human Resources, a company in Riyadh, has finished its IPO for individual investors, raising $105.8 million
Tamkeen Human Resources Company, based in Riyadh, has finished its individual investor offering and share distribution for its initial public offering (IPO). This raised $105.8 million (SAR 397.5 million), the company said on Sunday.
Individual investor offering
The individual investor offering took place from November 5 to November 6, after the institutional book-building period, which set the final share price at $13.3 (SAR 50) per share. The offering was oversubscribed by 138.2 times.
A total of 1,590,000 shares, or 20% of the total offering, were allocated to individual investors. These investors placed orders worth $310 million (SAR 1.14 billion), with the total demand for these shares being 14.4 times greater than the amount available.
Faris Saleh Al-Hanaki, the co-founder and CEO of Tamkeen, said that the strong demand from institutional investors shows high confidence in the company’s growth plans, which aim to provide good returns for shareholders.
The shares will be listed on the Saudi Stock Exchange (Tadawul) once all regulatory requirements are met.
The IPO will offer 7,950,000 shares, representing 30% of the company’s total shares, through the sale of shares owned by existing shareholders. The money from the sale will be given to the selling shareholders, after deducting about $6.7 million (SAR 25 million) for offering expenses, as mentioned in the prospectus.
Saudi Fransi Capital has been chosen as the financial advisor, lead manager, and bookrunner for the offering and has arranged for individual investors to submit their subscription requests through various financial institutions.
Saudi IPO Market
In the second quarter of the year, the Middle East and North Africa (MENA) region saw 14 companies go public, raising $2.64 billion. Most of this came from Saudi Arabian companies, according to EY’s MENA IPO Eye report from August.
Saudi Arabia led the MENA IPO market, with 11 of the 14 IPOs in the second quarter, raising a total of $1.6 billion. The top IPO was Dr. Soliman Fakeeh Hospital, followed by Saudi Manpower Solutions Company, which raised $240 million, and Rasan Information Technology Company, which raised $224 million.
Five of these IPOs were on the Tadawul main market, and the other six were on the Nomu market, raising $85.4 million in total.
The EY report predicts Saudi Arabia will keep its strong IPO performance, with 14 more companies, including Riyad Capital LLC and Arabian Mills for Food Products, planning to list by the end of the year.
Published: 11th November 2024
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