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Saudi Manpower Solutions’ (Smasco) shares climbed 20.7% on their first day of trading on the Tadawul yesterday to close at SAR 9.05 apiece, up from their initial price of SAR 7.50, according to market data. The shares hit the maximum of the ±30% band within which they are allowed to trade on the first three days during intraday trading, hitting an intraday high of SAR 9.75 per share. Starting from the fourth day of trading on the Tadawul, the band will be capped at no more than 10% up or down before circuit breakers kick in.
Background: Smasco’s IPO drew in strong demand, with the institutional tranche of the offering closing 128x oversubscribed, drawing in orders worth SAR 115 bn. The company is taking a 30% stake to market in a secondary share sale, with the pricing of the offering set to raise some SAR 900 mn for Smasco.
ADVISORS- SNB Capital quarterbacked the transaction as the sole lead manager, financial advisor, bookrunner, and underwriter. Stat Law Firm was legal advisor, EY was the financial due diligence advisor, and Arthur D. Little Saudi Arabia acted as market consultant. The receiving agents were SNB, SNB Capital and Al Rajhi Bank.
Up next for capital markets: Miahona, Rasan, and Fourth Mills are all in the last leg of their IPOs.
