INITIAL PUBLIC OFFERING

SAUDI MANPOWER SOLUTIONS COMPANY (SMASCO) is pleased to announce its intention to offer 30% of its share capital to the public through an Initial Public Offering (IPO) and listing its shares on the Main Market of the Saudi Exchange (Tadawul). Institutional and retail investors will be allowed the opportunity to acquire shares and participate in the long-term growth plans of the Company and the Saudi
manpower market.

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Established in 2012G, SMASCO is a pioneer in the manpower industry, offers end-to-end services and holds a leading market share of 14% – 16% as of 2022G. SMASCO has deployed over 160,000 workers since its inception and as of 31 December 2023 has deployed a workforce of over 37,000 active resources.

Offering services across many professions in more than 55 cities and provinces, SMASCO supports corporate entities and individuals in their manpower needs through a range of products and services underpinned by its commitment to excellence, trust, industry leadership and innovation, particularly through the use of digitization in which SMASCO has led the industry.

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SMASCO has helped its customers in the Kingdom’s fast growing and diversifying economy to meet their manpower requirements. SMASCO has been a leader in shaping the Kingdom’s manpower industry, aligning with the Vision 2030’s strategic objectives and streamlining recruitment to efficiently connect employers with top talent, supporting economic diversification and job fulfilment.

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MESSAGE FROM THE CHAIRMAN

Fahad bin Ali Almehedb

Fahad bin Ali Almehedb Chairman, SMASCO

SMASCO is proud to be the leading manpower company in the Kingdom. Not only were we first to be awarded a licence in 2012, but we have also played an important role in the transformation of the Kingdom and helped shape the manpower industry for the benefit of all in...

SMASCO is proud to be the leading manpower company in the Kingdom. Not only were we first to be awarded a licence in 2012, but we have also played an important role in the transformation of the Kingdom and helped shape the manpower industry for the benefit of all in KSA. With rapid economic growth forecast and the requirement for labor intensifying as new projects come on stream, we are prepared for our next phase of growth through our pioneering and innovative approach.

With the IPO, we embark on the next phase of our journey and we aim to further grow our market position, continue investing in digitalization to serve our customers in the most effective way and expand into markets and products.

Our ambition and commitment to realizing Vision 2030 by supporting the Kingdom’s growth and development getonly stronger with the opportunity which we see for the future and we will strive to achieve outperformance for shareholders to deliver both capital growth and attractive shareholder returns.”

We are a market leading and well-respected business, underpinned by strong macro fundamentals and dynamic growth prospects. The whole SMASCO team look forward to the task and opportunities ahead of us.

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MESSAGE FROM THE CEO

Abdullah bin Rakan Altimyat

Abdullah bin Rakan Altimyat Chief Executive Officer, SMASCO

“This IPO is a celebration of our success to date and a milestone for everyone who has been involved since we were first established in 2012. We are proud that we have provided assignments for over 160,000 workers. We have grown and maintained market leadership through constant innovation and agility...

“This IPO is a celebration of our success to date and a milestone for everyone who has been involved since we were first established in 2012. We are proud that we have provided assignments for over 160,000 workers. We have grown and maintained market leadership through constant innovation and agility which has allowed us to develop rapidly in a very dynamic marketplace, even during the pandemic.

Our ambition is to continue to delight our customers through efficient, often digital, high-quality service, to build and grow with our customers and to provide them with manpower that fits their needs. We have a strategy which will deliver our goals and objectives.

Our excellent prospects and the continuing part we can play in the growth of the Kingdom, we believe provides a very exciting future for the Company.”

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SMASCO IN NUMBERS

Authorized Manpower solutions Company in KSA

1st

Authorized Manpower solutions Company in KSA

Active resources

37,000+

Active resources

 Corporate client base across many professions

3000+

Corporate client base across many professions

Corporate market share <br> (as of 2022)

14%

Corporate market share
(as of 2022)

Individuals market share <br> (as of 2022)

16%

Individuals market share
(as of 2022)

Revenue in FY 2023

SAR 1.827 bn

Revenue in FY 2023

Market leading profit margins

12.9%

Market leading profit margins

Net Profit in FY 2023

SAR 166.3mn

Net Profit in FY 2023

Return on equity <br>  FY 2023

31.9%

Return on equity
FY 2023

Industry Leading EBITDA margin <br> FY 2023

11%

Industry Leading EBITDA margin
FY 2023

MAP OF LOCATIONS

Map
M1
HQ
M2
CORPORATE OFFICES
M3
BRANCHES
M4
ACCOMMODATION
M5
MAIN ACCOMMODATION HUB

INVESTMENTS HIGHLIGHTS

Attractive Growth fundamentals

Attractive Growth fundamentals

Attractive Growth fundamentals
Capital-light  model

Capital-light model

Capital-light  model
Competitive advantage

Competitive advantage

Competitive advantage
Impressive financials

Impressive financials

Impressive financials
Debt free

Debt free

Debt free
Experienced leadership

Experienced leadership

Experienced leadership

FAQS

downfaq
Where is SMASCO planning to list?

The shares will be listed on the Main Market of the Saudi Exchange.

The Offering shall be restricted to the following two groups of investors:

Tranche (A) Participating Parties: Comprising the parties entitled to participate in the book-building process as specified under the Book-Building Instructions issued by the Capital Market Authority (the “CMA”) this includes investment fund, qualified foreign companies and institutions, Gulf company investors, and other foreign investors under swap agreements) (collectively referred to as the “Participating Parties” and each a “Participating Party”) The number of Offer Shares to be provisionally allocated to the Participating Parties is one hundred and twenty million (120,000,000) Offer Shares, representing one hundred per cent. (100%) of the Offer Shares. The final allocation will be made after the end of the Individual Subscribers’ subscription using the discretionary allocation mechanism by the Financial Advisor The Financial Advisor shall have the right, if there is sufficient demand by Individual Subscribers and in coordination with the Company, to reduce the number of Offer Shares allocated to Participating Entities to one hundred and eight million (108,000,000) Offer Shares, representing ninety per cent. (90%) of the Offer Shares.

Tranche (B) Individual Subscribers: Comprising Saudi Arabian natural persons, including any Saudi female divorcee or widow with minor children from a marriage to a non-Saudi person who can subscribe for her own benefit or in the names of her minor children, on the condition that she proves that she is a divorcee or widow and the mother of her minor Saudi Arabian children, as well as any non-Saudi natural persons resident in the Kingdom or GCC natural persons, in each case who have a bank account with a Receiving Agent and the right to open an investment account with a Capital Market Institution or those who have an active portfolio with Al Ahli Capital in the event of subscription through Al Ahli Capital (the “Individual Subscribers” and each an “Individual Subscriber”, and any such Individual Subscriber participating in the Offering together with the Participating Entities, the “Subscribers”). A subscription for Offer Shares made by a person in the name of his divorced wife shall be deemed invalid and the applicant shall be subject to the sanctions prescribed by law. If a duplicate subscription is made, the second subscription will be considered void and only the first subscription will be accepted. A maximum of twelve million (12,000,000) Offer Shares representing ten per cent. (10%) of the total Offer Shares shall be allocated to Individual Subscribers. If the Individual Subscribers do not subscribe in full to the Offer Shares allocated to them, the Financial Advisor may in coordination with the Company reduce the number of Offer Shares allocated to Individual Subscribers in proportion to the number of Offer Shares subscribed by them.

When the Retail offer opens.

There will be no implementation of a lock-up period or restriction on the sale of shares following the listing.

RECEIVING ENTITIES

Saudi National Bank

King Fahd Road
Al Aqeeq District
KAFD Kingdom of Saudi Arabia

P.O. Box:

3208 Unit No.: 778

Website:

Alrajhi Bank

King Fahad Road
Al Muruj District Riyadh 11411
Kingdom of Saudi Arabia

SNB Capital Company

SNB Capital Company Regional Building
King Saud Road, Riyadh 11495
Kingdom of Saudi Arabia

P.O. Box:

22216

GET IN TOUCH

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For IPO related enquiries:

[email protected]

For media relations enquiries:

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