Saudi hospital operator SMC to sell 30% stake in local IPO

05/05/2025 02:17 AST

Saudi Arabian hospital operator Specialized Medical Co. unveiled plans for an initial public offering in Riyadh, a further sign that firms across the kingdom are pressing ahead with listings despite global market volatility.

SMC, as the company is known, will sell 75 million shares, or a 30% stake, it said in a statement on Sunday. Bookbuilding is set to start on May 11, with a listing date still yet to be determined, according to terms of the deal seen by Bloomberg.

SMC is one of a number of Saudi firms planning local trading debuts at a time of high uncertainty due to US President Trump's trade policies. United Carton Industries Co. is set to raise as much as $160 million through an IPO, while low-cost carrier Flynas and tech firm Ejada Systems are also gearing up to go public, Bloomberg has reported.

The health-care industry is a key pillar of Crown Prince Mohammed bin Salman's economic overhaul known as Vision 2030 as the kingdom prepares for population growth and increased life expectancy.

The sector has seen several listings as companies seek to capitalize on the expected boom. Dr. Soliman Abdel Kader Fakeeh Hospital Co. raised $763 million in the kingdom's largest IPO of 2024, while Almoosa Health Co. fetched $450 million.

Founded in 1999, SMC operates two hospitals in Riyadh and plans three more that will more than double capacity to 1,276 beds, according to the statement. It recorded net revenue of 1.1 billion riyals ($290 million) and a margin of 14.3% in the first nine months of 2024.

SMC is working with SNB Capital and EFG Hermes on the Saudi IPO.

Saudi Arabia has been the busiest Middle Eastern venue for new share sales so far this year, with firms raising almost $1.2 billion through IPOs, according to data compiled by Bloomberg.

The UAE and Oman have only seen one listing each, fetching $163 million and $333 million, respectively.

Gulfnews