Retail subscription to 12M shares of SMASCO starts on TASI today

Logo of Saudi Manpower Solutions Co. (SMASCO)

Retail investors will start today, May 26, subscription to 12 million shares of Saudi Manpower Solutions Co. (SMASCO) at SAR 7.50 each, as set by the book-building process.

The retail offering represents 10% of the total offer.

For More IPOs

The subscription process for the retail tranche will run for two days until May 27.  

The Capital Market Authority (CMA) approved, in March, the company's request to float 120 million shares, or 30% of the capital, in an initial public offering (IPO). The nominal value per share stands at SAR 1.

The company’s institutional offering, which ended last week, was 128x covered, whereas the order book reached a total amount of nearly SAR 115 billion.

SMASCO’s IPO is the fifth this year for the Main Market, after Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care Group) on May 21.

Tadawul witnessed eight IPOs in 2023, including MBC Holding Group Ltd. Ltd, Morabaha Marina and Mawarid Manpower Co., Jamjoom Pharmaceuticals Factory Co., First Milling Co., Lumi Rental Co., ADES Holding Co., and SAL Saudi Logistics Services Co.

Company Profile

SMASCO was established in 2012 in Riyadh to provide workforce services, with a fully paid-up capital of SAR 100 million, to be the first company licensed for workforce solutions by the Ministry of Human Resources in the Kingdom. The company’s current capital is SAR 400 million.

The company's activities include administrative services, support services, employment agency activities, and temporary employment agency activities.

According to the commercial register, the company’s activities involve temporary employment agencies for domestic services and temporary employment agencies for expatriate labor services.

The company's core activities consist of the following main business segments:

Corporate segment: This segment is the cornerstone of the group's work, as it provides comprehensive workforce services for several sectors through the professional and unskilled workforce.

Individual segment: This segment provides a wide range of domestic workforce services.

According to market study estimates, the group acquired a market share ranging between 14% and 16% in the Kingdom during 2022.

The company’s locations:

The group's headquarters is located in Riyadh. The individual segment’s (Raha Mouqeemah) services are available in 96 cities and provinces, while the (Raha Hourly) services are available in 52, through nine branches in eight major cities and 51 service centers.

The following map illustrates the company’s geographical locations:

Workforce:

The group employed a workforce from more than 40 different countries for each of its business segments. As of Sept. 30, 2023, the group had about 36,000 workers from different countries. This figure reflects the workforce recruited for the purposes of providing manpower services to external parties, and does not include the employees working for the group itself (amounting 635 employees).

About 93% of the group's foreign workforce was drawn from India, Indonesia, Uganda, the Philippines, Nepal, Bangladesh and Pakistan.

The following table shows details of the group’s workforce by nationality:

Subsidiaries:

The company directly and indirectly owns ownership shares in four subsidiaries located inside the Kingdom, and one company located outside. The table below shows the ownership details of the subsidiaries:

**Company under liquidation.