Saudi Arabia's Tamkeen Human Resources on Sunday kicked off the institutional book-building process for its initial public offering (IPO) across the price range of 46 Saudi riyals to 50 riyals per share. Participating parties fully covered the secondary offering of 7.95 million shares, which represents 30% of the manpower company's share capital, in the first hour.
This rapid interest underscores the growing confidence in the nation's equity market, reflecting broader trends in Saudi Arabia's economic landscape. In 2024, there have been notable IPOs in the region, exemplified by Saudi Arabian Oil, d/b/a Saudi Aramco, alongside the public float of local hospital group Dr.
Soliman Abdul Kader Fakeeh Hospital, which also experienced high investor interest within hours. Such dynamics suggest a rekindled allure of the equity markets in the kingdom, with new investors continuously seeking opportunities. The order books for Tamkeen Human Resources' IPO will close on Thursday, after which the final offer price will be determined.
Notably, if demand from individual investors is sufficient, 1.59 million shares, or 20% of the offered shares, will be allocated to them. In the absence of adequate demand from individual investors, the entire offering will be sold to participating entities, demonstrating the flexible nature of IPO structures in the market. Selling shareholders stand to receive net proceeds estimated at up to 398 million riyals from the IPO; however, none will be allocated to the human resource business itself.
The major shareholders include Tasheel Real Estate, possessing a 34.13% stake, and Dr. Sulaiman Al Habib Medical Services Group, which holds a 25% stake, indicating a strong backing from established corporate entities. Tamkeen provides a broad spectrum of domestic and corporate manpower services through its 17 branches across the kingdom.
With a track record of serving over a million homes and a diverse client base exceeding 162,000, according to information from its website, Tamkeen is poised to play a pivotal role in Saudi Arabia's vibrant economic framework. BSF Capital is serving as the financial adviser, lead manager, bookrunner, and underwriter for the anticipated listing on the Saudi Exchange's main market, reinforcing its position as a vital player in managing high-stakes financial operations in the region..