Retail subscription to Tamkeen’s 1.59M shares opens

05/11/2024 Argaam Special
Logo ofTamkeen Human Resources Co.

Logo of Tamkeen Human Resources Co.


Retail investors will start today, Nov. 5, subscription to 1.59 million shares of Tamkeen Human Resources Co., at SAR 50 each, as determined by the book-building process.

 

The retail offering, representing 20% of the total offered shares, will continue until Nov. 6.

 

For More IPOs

 

The Capital Market Authority (CMA) approved, in September, Tamkeen’s request to register and offer 26.5 million shares, or 30% of the company’s capital, in an initial public offering (IPO), at SAR 10 each, according to Argaam’s data.

 

The institutional offering, which closed last week, was nearly 138.2x subscribed.

 

This is the eleventh listing on Saudi Arabia’s Main Market in 2024, following Middle East Pharmaceutical Industries Co. (Avalon Pharma) (Jan. 30), Modern Mills for Food Products Co. (March 5), Soliman Abdel Kader Fakeeh Hospital Co. and Miahona Co. (May 21), Saudi Manpower Solutions Co. (SMASCO) (May 26), Al Taiseer Group Talco Industrial Co. (TALCO) (May 28), Rasan Information Technology Co. (May 29), Almajed Oud (Sept. 15), Arabian Mills for Food Products (Sept. 18) and Fourth Milling Co. (Oct. 2).

 

Last year, eight companies listed on TASI, including, Al Mawarid Manpower Co., Jamjoom Pharmaceuticals Factory Co. (Jamjoom Pharma), Morabaha Marina Financing Co. (MRNA), First Milling Co.Lumi Rental Co.ADES Holding Co., and SAL Saudi Logistics Services Co., besides the listing of MBC Group

 

Established in 2018, Tamkeen is a closed joint stock company based in Riyadh.

 

Tamkeen specializes in workforce solutions in the Kingdom, providing a wide range of customized recruitment services to corporate and individual clients locally. It offers its services to the corporate and retail segments, catering to their hourly and contractual needs.

 

The company operates through a network of 17 branches in Saudi Arabia and an online platform, backed by a diversified group of more than 14,000 workers from eight different countries. In addition, Tamkeen has 270 employees.

 

By the end of March 2024, the group's external recruitment network extended across 15 countries, efficiently providing a workforce for its diverse business sectors. Nearly 98.6% of the international workforce was recruited from eight main countries: Indonesia, the Philippines, Kenya, Uganda, Nepal, Bangladesh, Pakistan, and India. This global workforce is organized through a wide range of more than 36 credible recruitment agencies, which play a crucial role in identifying and securing foreign talent across various specializations to meet the needs of corporate and individual clients.

 

Company’s market share:

 

The target workforce market in the Kingdom is relatively consolidated, with the top five competing companies accounting for 58.6% of the total sales value in 2022.

 

Tamkeen ranks fifth, with a market share of 4% in 2022.

 

The following table shows major companies’ market share in terms of value (%) of the overall industry across the Kingdom in 2022.

 

Share of Key Companies in Saudi Arabia (2022)

Company

Rating

Market Share

SMASCO

1

24.1%

Maharah

2

15.3%

Al Mawarid

3

8.8%

Jawa

4

6.4%

Tamkeen

5

4.0%

Others

--

41.4%

 

Affiliated Units

 

The company directly owns a share in three affiliated companies locally, as follows:

 

Subsidiaries

Subsidiary

Capital

(SAR ‘000)

Direct Ownership

Remaining Ownership

Open Technologies for Communications and Information Technology Company

300.0

100 %

--

Elaf Specialist Contracting Company

100.0

100%

--

Eraf Medical Company

4000.0

60%

Dr Sulaiman Al Habib Medical Services Group Company

 

Company’s Revenue

 

Tamkeen’s 2023 revenue significantly increased to approximately SAR 495.8 million.

 

According to the company’s prospectus, the corporate revenue increased to SAR 277.3 million, while the retail revenue reached SAR 218.6 million, as shown:

 

Tamkeen’s Revenue by Segment (2023) (SAR mln)

Segment

Revenue

% of Total

Individuals

218.6

44 %

Contracting, Maintenance and Operation

121.0

24 %

Restaurants & Food

72.6

15 %

Medical

44.5

9 %

Retail

36.2

7 %

Technology & Information System

2.9

1 %

Total

495.8

100 %

 

Company Profile

Company

Tamkeen Human Resources Co.

Market

TASI

Core Activities

Human resources, recruitment and lease of household workers

Capital 

SAR 265 mln

Number of Shares

26.50 mln

Share Par Value

SAR 10

 

Subscription Details

Issue Percentage

30%

Price

SAR 50/share

Number of Shares Offered

1.59 mln (20% of offered shares)

Qualified Subscribers

Retail investors

IPO Minimum Limit for

Retail Investors

10 shares

Maximum Limit for Retail Investors

250,000 shares

Retail Offering

For two days, Nov. 5-6, 2024

Final Allocation

Nov. 11, 2024

Refund (if any)

Nov. 13, 2024

 

Additional Information

Financial Advisor, Book-Runner, and Underwriter

Saudi Fransi Capital

Receiving Banks

Saudi Fransi Capital, Al Rajhi Capital, SNB Capital, Riyad Capital, Albilad Capital, Aljazira Capital, Alistithmar Capital, Derayah Financial, Alinma Investment, ANB Capital, Yaqeen Capital, Alkhabeer Capital, SAB Invest, Sahm Capital

 

Major Shareholders

Shareholders

Pre-IPO

Post-IPO

Number of Shares

(‘000 shares)

Ownership

(%)

Number of Shares

(‘000 shares)

Ownership

(%)

Tasheel Real Estate Company

9043.13

34.13%

5634.56

21.26%

Dr. Sulaiman Al Habib Medical Services Group

6625.00

25.00%

4637.50

17.50%

Fares Saleh Alhanaki

2650.00

10.00%

2650.00

10.00%

Saleh Mohammed Saleh Al-Hajjaj

2650.00

10.00%

1523.75

5.75%

Abdulrahman Ali AlQabisi

1987.50

7.50%

1325.00

5.00%

Abdullah Sulaiman Alnagir*

993.75

3.75%

993.75

3.75%

Saleh Hamad Ali Albahiji

993.75

3.75%

695.63

2.63%

Abdullah Ahmed Sultan Alshahri

795.00

3.00%

556.50

2.10%

Saif Mohammed Alsharekh

496.88

1.87%

347.81

1.31%

Zeyad Mohammed Altunisi

265.00

1.00%

185.00

0.70%

Public

--

--

7950.00

30.00%

Total

26500.00

100%

26500.00

100%

*Abdullah Sulaiman Alnagir owns a 50% stake in Tasheel Real Estate Co. that holds 34.13% direct ownership in the company. Accordingly, Alnagir indirectly owns nearly 4.52 million shares, or 17.06% of the company's pre-IPO capital.

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