Saudi Arabia-based Specialized Medical Co. attracted about 121 billion riyals ($32 billion) in orders for its initial public offering, following a reset of its institutional order book after the company clawed back recently paid dividends.
The hospital operator’s offering was nearly 65 times oversubscribed, it said in a statement. That’s the lowest subscription multiple among recent IPOs in the kingdom.
Last week, SMC issued a revised prospectus disclosing that existing shareholders had agreed to return 200 million riyals in dividends. That move triggered a reopening of the institutional order book, allowing investors to revise or cancel orders. No new bids were accepted. The retail subscription period is scheduled for June 15 and 16.
SMC, as the company is known, is set to raise 1.9 billion riyals through the listing in Riyadh. The final offer price was set at 25 riyals per share, the top end of the marketed range, implying a market capitalization of approximately 6.3 billion riyals.
Shareholders are selling a 30% stake, or 75 million shares. The Company for Cooperative Insurance — known as Tawuniya — has agreed to purchase 5.9 million shares, or roughly 2.35% of the company’s post-offer equity, as a cornerstone investor.
SMC is working with SNB Capital and EFG Hermes on the IPO.
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