SMC issues supplementary prospectus with Tawuniya as cornerstone investor

One of SMC Hospitals

Specialized Medical Co. (SMC) issued a supplementary prospectus, disclosing that it received a binding commitment from The Company for Cooperative Insurance (Tawuniya) to subscribe as a cornerstone investor for 5.87 million shares in the offering. This represents 2.35% of the company’s post-offering share capital.

According to the supplementary prospectus, the company approved the allocation of these shares to Tawuniya as part of the offering process.

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In accordance with the Capital Market Authority’s (CMA) rules on the offer of securities and continuing obligations, an issuer is required to submit a supplementary prospectus if, at any time after the date of the original prospectus and before the completion of the offering, the issuer becomes aware of a material change in any essential information included in the original prospectus or any material matter that should have been included in the original prospectus.

According to data available with Argaam, SMC plans to float 75 million shares on the Main Market (TASI). This represents 30% of the company’s SAR 250 million capital, divided into 250 million shares, each with a nominal value of SAR 1.

The book-building process and subscription period for participating entities will run from May 11 to May 15.

The retail subscription period will run for two days starting May 28, 2025.

The subscription is limited to two categories of investors:

Tranche (A): Participating Parties: The segment includes investment funds, foreign companies and institutions, investors from GCC companies, and other foreign investors by swap agreements. A total of 75 million shares, or 100% of the offered shares, will be allocated to the segment. In the event of sufficient demand from retail investors, the lead manager will have the right to reduce the number of their allocated shares to 80% of the total offer shares, at a minimum of 60 million, provided this reduction does not apply to the cornerstone investor. The final allocation for the cornerstone investor will remain fixed at 5.87 million shares under all circumstances. Accordingly, 54.12 million shares will be allocated to participating parties, excluding the shares designated for the cornerstone investor and retail subscribers.

Tranche (B): Retail Investors: The segment includes Saudi nationals, any non-Saudi natural persons living in the Kingdom and any GCC nationals who hold a bank account with one of the receiving entities and has the right to open an investment account with a capital market institution. A maximum of 15 million shares (20% of the total offer shares) will be allocated to individual investors.

To view the supplementary prospectus