Saudi’s SMC prices IPO at top end after massive investor demand

Riyadh: Specialized Medical Company (SMC), a leading healthcare provider in Saudi Arabia, on Wednesday, announced the successful pricing of its initial public offering (IPO) at SAR 25.00 per share.

This price point represents the top end of the previously indicated price range, which shows significant demand and positive sentiment surrounding the company; it also implies a total offering size of around SAR 1,875 million ($500 million) and a market capitalization at the listing of SAR 6,250 million ($1.667 billion).

The orders recorded during the institutional book-building exceeded SAR 121.3 billion (approximately more than $32.4 billion), representing a coverage of 64.7 times.

The level of interest resulted in an oversubscription rate of 64.7 times the offered shares, underscoring the robust confidence in SMC's business model and prospects.

The IPO involves offering 75,000,000 ordinary shares, constituting 30 per cent of SMC’s total issued share capital. While 100 per cent of these shares were initially allocated to institutional investors, a portion will be made available to individual subscribers. The subscription period for retail investors will run for two business days, commencing on Sunday, June 15, and concluding at 2 pm (KSA time) on Monday, June 16.

“Following 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,” the company said in a statement.

Bassam Chahine, CEO of SMC, said, “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 centre to one of Riyadh’s leading private healthcare providers.” Chahine said, “This IPO sets the stage for our next expansion phase as we double our capacity, deepen our presence in high-growth areas like Northern Riyadh, and continue redefining healthcare delivery in the Kingdom.”

Furthermore, The Company for Cooperative Insurance (Tawuniya), a major player in the Saudi insurance market, has committed to subscribe as a cornerstone investor for 5,875,000 shares, representing 2.35 per cent of SMC’s share capital post-IPO.

SMC believes Tawuniya’s participation will provide significant momentum for achieving its long-term strategic objectives. The net proceeds from the IPO will be distributed to the selling shareholders, and the company will not receive any part of the funds raised. Following the completion of the offering and all necessary regulatory procedures with the Capital Market Authority (CMA) and the Saudi Exchange, SMC's shares are expected to be listed and traded on the Saudi Exchange’s Main Market.

Saudi Arabia's IPO market has been a significant driver of activity in the MENA region. 2025 has a strong pipeline of companies from various sectors planning to go public.