Saudi Arabia’s Tamkeen Human Resources Co. has finalized the offer price for its initial public offering (IPO) on the Saudi Exchange (Tadawul), setting the stage to raise over $105 million. The decision comes after a highly oversubscribed book-building process, reflecting strong investor confidence in the staffing solutions provider. With retail subscriptions slated to begin soon, Tamkeen is poised to make a significant impact on the local market.
IPO Pricing and Investor Demand
Tamkeen has set the final offer price at SAR 50 ($13.31) per share, which is the upper limit of its initial price range of SAR 46 to SAR 50. This pricing strategy indicates robust demand from institutional investors, as the IPO attracted an order book worth SAR 55 billion, making it 138 times oversubscribed.
- Final Offer Price: SAR 50 ($13.31) per share
- Price Range: SAR 46 – SAR 50 per share
- Total Capital Raised: SAR 397.5 million ($105.9 million)
- Order Book Size: SAR 55 billion
- Oversubscription Rate: 138 times
This overwhelming response underscores the market’s appetite for staffing solutions and the confidence investors have in Tamkeen’s growth prospects.
Tamkeen’s Market Position and Growth
Founded in 2018 and headquartered in Riyadh, Tamkeen has quickly established itself as a key player in Saudi Arabia’s staffing industry. With a 4% market share as of 2022 and a workforce exceeding 14,000, the company has positioned itself as a reliable provider of staffing solutions to businesses and individual clients across the Kingdom.
Key Highlights:
- Establishment Year: 2018
- Headquarters: Riyadh, Saudi Arabia
- Market Share: 4% in local staffing market (2022)
- Manpower: Over 14,000 employees
Tamkeen’s growth trajectory has been impressive, driven by the increasing demand for skilled labor and the company’s ability to adapt to the dynamic needs of the Saudi job market.
Implications of the IPO for Saudi Market
The successful IPO of Tamkeen is a positive indicator for the Saudi financial markets, showcasing the potential of domestic companies to attract significant investment. Raising over $105 million will enable Tamkeen to expand its operations, enhance its service offerings, and invest in technology to streamline its staffing processes.
| Aspect | Details |
|---|---|
| Capital Raised | SAR 397.5 million ($105.9 million) |
| Use of Funds | Expansion of operations, technology upgrades |
| Market Impact | Boosts investor confidence in local IPOs |
| Future Plans | Enhancing service offerings, market expansion |
This capital injection is expected to propel Tamkeen into the next phase of its growth, reinforcing its position in the competitive staffing industry.
Retail Investors: How to Participate
Retail investors looking to participate in Tamkeen’s IPO have a limited window to subscribe. The retail subscription period is scheduled from November 5 to November 6, offering individual investors the opportunity to buy shares at the final offer price.
Steps to Subscribe:
- Log In: Access your brokerage account on Tadawul.
- Select IPO: Navigate to the IPO section and find Tamkeen’s listing.
- Submit Order: Enter the number of shares you wish to purchase within the subscription period.
- Confirm: Review and confirm your order to complete the subscription.
By participating in the IPO, retail investors can be part of Tamkeen’s growth story and benefit from its future successes in the staffing market.
