Specialized Medical Company announces the Final Offer Price for its Initial Public Offering

Zawya

2 days ago

Riyadh, Saudi Arabia – Specialized Medical Company (' Company ' or ' SMC '), one of the leading healthcare providers in the Kingdom of Saudi Arabia (' Kingdom '), recognized as a center of excellence delivering comprehensive and integrated healthcare services across a wide range of specialties, announces the successful completion of the book-building process for institutional investors (' Participating Parties ') and the final offer price (the ' Final Offer Price ') for its initial public offering (the ' IPO ' or the ' Offering ') on the Main Market of the Saudi Exchange.
The Final Offer Price has been set at SAR 25.00 per share, which is at the top end of the previously announced price range for the IPO, implying a total offering size of around SAR 1,875 million (USD 500 million) and a market capitalization at listing of SAR 6,250 million (USD 1,667 million). The orders recorded during the institutional book-building exceeded SAR 121.3 billion (approximately more than USD 32.4 billion), representing a coverage of 64.7 times.
In line with regulatory requirements, SMC issued a Second Supplementary Prospectus reflecting a shareholder decision to revoke previously distributed interim dividends. Following this, the institutional book-building was reopened exclusively to existing institutional participants, offering them the opportunity to amend or rescind their bids.
SMC received strong level of investor engagement since the publication of the Second Supplementary Prospectus. The deliberate and strategic decision taken by SMC's shareholders reinforces their confidence in the IPO and their belief in the Company's long-term value creation potential for both current and future shareholders.
The subscription period for Individual Subscribers will commence on Sunday, 15/06/2025G (corresponding to 19/12/1446H), and ends at 2:00 PM (KSA time) of Monday, 16/06/2025G (corresponding to 20/12/1446H).
Bassam Chahine, Chief Executive Officer of Specialized Medical Company (SMC), commented: ' Reaching the top end of the price range is a clear vote of confidence in SMC's performance, vision, and growth strategy. It marks a significant milestone in our journey from a single day-surgery center to one of Riyadh's leading private healthcare providers. This IPO sets the stage for our next phase of expansion as we double our capacity, deepen our presence in high-growth areas like Northern Riyadh, and continue to redefine healthcare delivery in the Kingdom.'
HIGHLIGHTS OF THE OFFER
The Company has appointed EFG Hermes KSA and SNB Capital Company (' SNB Capital ') as the joint financial advisors (hereinafter referred to as the " Financial Advisors"), bookrunners (the " Bookrunners"), and underwriters (the " Underwriters") and appointed SNB Capital as the lead manager (hereinafter referred to as the " Lead Manager") in respect to the Offering described herein.
The Company has also appointed SNB Capital, SAB Invest, Al Rajhi Capital, BSF Capital, Alinma Investment, Riyad Capital, Al Jazira Capital, Alistithmar Capital, ANB Capital, Derayah Financial Company, Yaqeen Capital, Al Khabeer Capital, Albilad Capital, GIB Capital and Sahm Capital to act as receiving agents (collectively, the ' Receiving Agents ') for retail investors.
The Offering will consist of 75,000,000 ordinary shares (the 'Offer Shares'), representing 30% of the Company's total issued share capital.
100% of the Offer Shares have been initially allocated to the Participating Parties that took part in the institutional book building process. In the event that Individual Subscribers subscribe in full for the Offer Shares allocated thereto, the Financial Advisors shall have the right to reduce the number of Offer Shares allocated to Participating Parties to a minimum of sixty million (60,000,000) Offer Shares, representing 80% of the total Offer Shares, provided that such reduction shall not apply to the Cornerstone Investor and the final allocation to the Cornerstone Investor shall be five million eight hundred seventy-five thousand (5,875,000) shares of the Offer Shares (representing 2.35% of the Company's share capital after the Offering) in all cases. Accordingly, fifty-four million one hundred and twenty-five thousand (54,125,000) shares of the Offer Shares will be allocated to the Participating Parties other than the Offer Shares allocated to the Cornerstone Investor and individual shareholders.
The Company for Cooperative Insurance (Tawuniya) committed to subscribe, as Cornerstone Investor, for 5,875,000 shares of the Offer Shares (representing 2.35% of the Company's share capital after the Offering). The Company for Cooperative Insurance (Tawuniya) is considered a major investor in the Saudi markets. The Company believes that the contribution of the Company for Cooperative Insurance (Tawuniya) will provide an essential drive for achieving growth and long-term strategic goals.
The Offer Shares will be offered for subscription to individual and institutional investors, including institutional investors outside the United States in accordance with Regulation S under the US Securities Act of 1933G, as amended ('US Securities Act'). The Offering's net proceeds will be distributed to the Selling Shareholders. The Company will not receive any part of the Offering Proceeds.
The Offer 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 Capital Market Authority (CMA) and the Saudi Exchange.
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To view the full Prospectus and information on the IPO, please visit www.ipo.smc.com.sa