Al Mawarid’s 450,000-share retail IPO opens on TASI today
28/05/2023 Argaam Special
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Logo of Al Mawarid Manpower Co.
Retail investors will start today, May 28, subscription to about 450,000 shares of Al Mawarid Manpower Co., at SAR 64 each, as set by the book-building process.
The subscription process for the retail tranche will run for three days until May 30.
The Capital Market Authority (CMA) approved on Dec. 26, 2022, the company's request to float 4.5 million shares in an initial public offering (IPO), representing 30% of its SAR 150 million capital (15 million shares).
The company’s institutional offering, which ended last week, was 54x covered.
The IPOs of Al Mawarid and Morabaha Marina Financing Co., which also starts today, are the first on Tadawul this year.
Al Mawarid was established as a closed Saudi joint stock company in 2012 in Riyadh. The company’s activities are to mediate the recruitment of expatriate workers, where operations consist of three main business segments – corporate, individuals-contractual, and, hourly rental services.
The corporate segment represents the revenues realized from corporate clients and includes maintenance companies, restaurants, construction and contracting, transportation, and hospitals. The duration of contracts signed under this segment is two years on average.
Individuals-contractual segment comprises revenues achieved from contracts signed with individual customers, and is related to maids, cleaners and private drivers. Bills are paid in advance except for contracts that are automatically renewed with existing customers. The average worker's secondment service ranged from SAR 2,000 to SAR 3,500 per month during the first half of 2022, based on the worker's competence and salary.
Hourly rental services segment includes revenues from individual customers on an hourly basis, particularly, with regard to maids and cleaning services. The average price of the service ranged from SAR 90 to SAR 140 per visit during the first half of 2022, based on the worker's efficiency, salary and the timing of the visit whether in the morning or evening.
The company's client base is divided in terms of the number of clients – it includes more than 500 clients in the corporate segment, and, provides corporate services to more than 13 sectors.
The recruitment firm enjoys a large network and partnerships with more than 35 international agencies supporting recruitment in 24 different countries.
The majority of its workforce is recruited from Indonesia, the Philippines, Bangladesh, Uganda, Pakistan and India. As much as 93.8% of the group's foreign workforce was brought from these countries during H1 2022.
The company’s market share is more than 10%, with its business spread in seven major cities with 13 branches across the Kingdom.
The company owns stakes in two wholly and directly owned subsidiaries. The table below shows the details:
Details of the Company’s Subsidiaries
Direct Stake (%)
Capital (SAR ‘000)
Company’s Sales to total Group Sales (%)
Musanid Almawarid for Operation and Maintenance
* Six-month period ending June 30, 2022
Al Mawarid Manpower Co.
Recruitment services of domestic labor for public and private companies as well as individual clients
SAR 150 mln
Number of shares
Offered Shares for Retail Investors
450,000 ordinary shares
IPO Minimum Limit for Retail Investors
IPO Maximum Size for Retail Investors
Retail Offering Period (3 days)
May 28-30, 2023
June 5, 2023
Surplus Refunds (if any)
June 6, 2023
Financial Advisor, Lead Manager, Bookrunner and Underwriter
Bank AlJazira, Al Rajhi Bank
Number of Shares
Number of Shares
Alomaier Trading and Contracting Co.
Al-Ayuni Investment and Contracting Co.
Saudi Edarah Co.*
Khalda Trading Group
Almawaridkom Trading Group
Alsaraya Investment Co.
Riyadh Ibrahim Romaizan Alromaizan
Wathbah Investment Co
* Saudi Edarah owns 22% in Al Saraya Investment Co., and as a result, Edarah owns 1.14% indirect stake in Al Mawarid.