Almasar Alshamil Education to float 30% stake on Saudi exchange amid IPO boom

27/10/2025 01:57 AST

Almasar Alshamil Education, the Gulf's largest provider of specialized education services, has announced plans to list 30 per cent of its share capital on the Saudi Exchange's Main Market, joining a growing wave of companies tapping into the Kingdom's buoyant IPO market.

The company, backed by Amanat Special Education and Care Holdings Ltd., received regulatory approval from the Capital Market Authority (CMA) on September 29 to offer 30,720,400 shares, representing 30 per cent of its SAR 1.02 billion share capital. The IPO price will be determined through a book-building process led by SNB Capital and EFG Hermes Saudi Arabia.

The offering comes amid a record year for IPOs in Saudi Arabia. According to Riyad Capital, the kingdom is expected to host up to 46 IPOs in 2025, including 14-16 on the Main Market and up to 30 on the Nomu Parallel Market. In the first half of the year alone, six companies raised $2.8 billion, led by the high-profile listing of budget airline flynas.

"Almasar Alshamil's IPO reflects the continued investor appetite for high-growth, socially impactful sectors," said Nasser Alajaji, Chief of Listing at the Saudi Exchange. "Education, particularly in underserved segments like special needs and higher education, is a key pillar of Vision 2030."

Founded through a network of subsidiaries, Almasar Alshamil operates across Saudi Arabia and the UAE. Its special needs education arm, Human Development Company (HDC), and its subsidiary Human Rehabilitation Company (HRC), serve over 7,950 beneficiaries through 39 daycare centers, 14 private schools, and three clinics. In higher education, the company owns Middlesex University Dubai, with 6,400 students, and holds a 35 per cent stake in NEMA Holding, which operates five campuses serving 13,500 students.

The company's revenue surged from 181 million Saudi riyals in 2022 to 437 million riyals in 2024, a compound annual growth rate (CAGR) of 55 per cent. EBITDA nearly doubled over the same period, rising from 96.7 million riyals to 215.6 million riyals, driven by expansion in both daycare centers and university enrollments.

"Today marks a major milestone in our journey to expand access to high-quality, specialised education across the region," said Dr. Shamsheer Vayalil, Chairman of Almasar Alshamil. "This IPO is a testament to our confidence in the long-term prospects of our business and our mission to foster inclusive education."

CEO Majed Al Mutairi added, "We are uniquely positioned to scale our high-impact education providers across the GCC. The IPO will enable us to strengthen our capabilities, expand our geographic reach, and create long-term value for shareholders."

The company's growth strategy includes launching more daycare centers in Saudi Arabia, expanding its higher education footprint, and potentially entering the K-12 segment. A SAR 115 million capital expansion plan is already underway to increase daycare capacity to 8,000 beneficiaries.

Almasar Alshamil's IPO will be open to both institutional and retail investors. Qualified Foreign Investors (QFIs), Foreign Strategic Investors (FSIs), and GCC corporate entities can participate directly, while other foreign investors may gain exposure through SWAP agreements.

The offering proceeds will go entirely to the selling shareholder, Amanat, with no new capital being raised by the company itself.

As Saudi Arabia continues to diversify its economy and deepen its capital markets, education is emerging as a key sector for both social impact and investor returns. Almasar Alshamil's listing is poised to be a bellwether for future education IPOs in the region.