Al-Motaqadimah Schools set to go public by year-end: Chairman

Al-Motaqadimah Schools Co. (MSC) is planning to float a stake in the Saudi market by the end of 2020, chairman Abdelrahman Al-Haqbani told Argaam in an exclusive interview, adding that the company was among the first educational firms invited to go public.

Established 24 years ago, MSC emerged with a small school. In 2009, it fulfilled its target through acquiring leased school buildings.

In 2015, the company shifted to buying schools; it currently owns 24 educational complexes and operates and manages 5 other schools.

“MSC aims to have 60 educational complexes in the next 3 years and raise the private education’s market share in the Kingdom to 25% in line with Saud Vision 2030,” Al-Haqbani said.

The company has over SAR 2.2 billion investments. It also has a strong credit rating, which enabled it to secure loans from the Ministry of Finance and other local banks.

“Cash flows and operating efficiency are strong. The company’s returns are the highest among peers. It also has the largest market share in the Kingdom,” he added.

The Ministry of Education offered land plots to investors, of which MSC had 58 educational facilities. The company needs more than SAR 2 billion to equip these new facilities.

Therefore, MSC will form partnerships and issue 5-year sukuk to complete the construction, which will pave the way for enhancing the relationship with the Public Investment Fund (PIF) and qualify the company to be the fund’s investment arm in the educational sector.

The Kingdom’s sovereign fund does not currently own a stake in the company, but may become one of its partners going forward, the top official noted.

Under these agreements, MSC will receive cash and assets. The company obtained 14 out of 58 licenses for educational facilities so far. It is in process to qualify contractors and begin the required construction works.

In addition, Al-Haqbani said that the company seeks to develop the management services of educational buildings through the exclusive franchise system.

He further explained that MSC is in talks with some Arab governments to manage and operate their educational buildings, thanks to its overseas track record in that field.

Last week, MSC signed 5 partnership and cooperation agreements with the Saudi Arabian General Investment Authority (SAGIA), Property Development Co. in the Ministry of Education, ASMA Capital, ADIM Capital, and Google Education for a total value of SAR 2.9 billion, Argaam reported.