SMC opens 15M shares at SAR 25 for retail subscribers

One of SMC Hospitals

Specialized Medical Co. (SMC) launches today, June 15, a retail offering for 15 million shares on the Main Market (TASI) at SAR 25 each, as determined by the book-building process.

The shares allocated to individual subscribers represent 20% of the total shares on offer. The subscription period will continue for two days until June 16.

The retail offer was earlier scheduled for May 28-29, but was postponed.

For More IPOs

In March, the Capital Market Authority (CMA) approved the company’s application to list and offer 75 million shares on TASI, representing 30% of its capital.

SMC will allocate 5.87 million shares, representing 2.35% of post-IPO capital, to The Company for Cooperative Insurance (Tawuniya) as a cornerstone investor.

Institutional offering ended last week, with a coverage ratio of 64.7 times.

SMC will be the sixth company to list on TASI this year, following the IPOs of Derayah Financial on Feb. 20, Arabian Company for Agricultural & Industrial Investments (Entaj) on Feb. 26, Umm Al Qura for Development and Construction Co. (Masar) on May 5, United Carton Industries Co. (UCIC) on May 12 and Flynas Co. on May 28.

Tadawul witnessed 14 IPOs last year, following listings by Middle East Pharmaceutical Industries Co. (Avalon Pharma) on Jan. 30, Modern Mills for Food Products Co. on March 5, Miahona Co. and Dr. Soliman Abdulkader Fakeeh Hospital Co. (Fakeeh Care) on May 21, Saudi Manpower Solutions Co. (SMASCO) on May 26, Al Taiseer Group Talco Industrial Co. (TALCO) on May 28, Rasan Information Technology Co. on May 29, Almajed for Oud Co. on Sept. 15, Arabian Mills Co. on Sept. 18, Fourth Milling Co. (MC4) on Oct. 2, Tamkeen Human Resources Co. on Nov. 5, United International Holding Co. on Nov. 19,  Almoosa Health Co. on Dec. 23 and Nice One Co. on Dec. 24.

Key background

Founded in 1994, SMC is a closed joint stock company headquartered in Riyadh. It focuses on developing, managing, and operating multi-specialty general hospitals, which provide primary, secondary and tertiary healthcare services.

According to its articles of association, the company's activities include the retail sale of pharmaceutical and medical products, cosmetics, and toiletries in specialized stores, warehousing, and other food service activities, hospitals, and other human health services.

The company's current capital stands at SAR 250 million, divided into 250 million shares with a nominal value of SAR 1 per share.

It runs two hospitals in Riyadh: SMC (1) on King Fahd Road and SMC (2) on King Abdullah Road. Three more hospitals are under development in the capital city.

Current Hospitals:

The company primarily operates in the healthcare segment, with two hospitals of a total capacity of 578 beds and 266 outpatient clinics.

In 2025, it reduced the number of beds at SMC 2 hospital to lower reliance on government-referred patients, and expanded outpatient clinics from 96 to 116.

Future Projects

The company aims to establish three new hospitals in Riyadh to address the rising demand for healthcare services A new multi-specialty hospital is currently under construction on the Northern Ring Road in Riyadh, in addition to two other hospitals in northern ​​Riyadh.

The company plans to double its capacity by adding 698 beds and 440 outpatient clinics by 2029, with an estimated cost of SAR 3.18 billion.

 Subsidiaires

SMC has two subsidiaries: SIH Health Co. for construction and hospital operations, and International Food Services Co. for catering (IFS). IFS contributed SAR 44.8 million, about 3% of the company’s top-line by end-2023, as shown below:

The following table highlights the company’s key performance indicators since 2021: