Saudi IPOs gather steam after ‘Liberation Day’ hiatus

• SMC IPO launches Sunday
• 75m shares on offer
• ‘This is the right time’ – CEO

Saudi hospital and clinic operator Specialized Medical Company (SMC) starts the process of selling shares to the public on Sunday – only the second IPO in the kingdom since Donald Trump rocked global markets a month ago with his April 2 tariff announcement.

It would also be the first Saudi hospital group to list its shares on the main Saudi Exchange since Almoosa raised almost $450 million in an IPO last year.

SMC is seeking to sell 75 million shares, equivalent to 30 percent of the company, starting on Sunday. Exactly how much the company is seeking to raise will be determined during the book-building exercise.

“In the past few weeks, there were a lot of uncertainties and we have noticed this,” said CEO Bassam Chahine.

“The need, the appetite of investors – and also our advisors have been telling us – this is the right time to go for it.”

Global stock markets, including in the Gulf, plunged in the wake of President Trump’s tariff announcement, throwing the timeline for IPO plans in the region into flux, with analysts saying that the turmoil would delay share sales. The main Saudi index fell by almost 7 percent at the start of April but, like markets around the world, has since bounced back.

So far this year, three companies in Saudi Arabia have sold shares to the public for listing on the main exchange, raising just over $1 billion between them.

Of seven more companies that have regulatory approval to sell shares for listing on the main exchange, United Carton Industries – the region’s largest paper-based packaging company – closes its IPO books next week as it seeks to raise as much as SAR600 million ($160 million).

SMC operates two hospitals in the capital, Riyadh, with a combined capacity of almost 580 beds, as well as 266 outpatient clinics. It plans to open three more hospitals in the city within three years, more than doubling patient-bed capacity.

SMC will use the funds raised from the IPO to cover capital spending and debt obligations, according to Chahine.

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Saudi Arabia, the most populous of the six Gulf Arab nations, needs around 30,000 more hospital beds by 2030 to meet growing demand for healthcare, and as the government seeks to limit its role in providing healthcare to its citizens by relying more on the private sector.

“It’s up to the private sector, supported by the private-sector participation law, in enabling this and covering that demand,” said Chahine.

SMC reported SAR185 million in net profit last year, and a margin of 13 percent. No date has yet been made public for listing on the exchange.

Other companies with CMA approval to list on the main exchange are Flynas, Sport Clubs Company, Dar Al Majed Real Estate Company, Marketing Home Group and Ejada.

They have not yet released prospectuses. Approval is for six months.