Al Mawarid shares to debut on Tadawul today

Logo of Al Mawarid Manpower Co.

Al Mawarid Manpower Co. shares will start trading on the Saudi Exchange (Tadawul) today, June 19, under the symbol 1833 and ISIN code SA15QH00SKH0.

Shares will trade with ±30% daily and ±10% static price fluctuation limits, according to a bourse statement.

From the fourth trading day onwards, the daily price fluctuation limits will revert to +/-10%, while the static price fluctuation limits will no longer apply.

This will be the first company to debut on Tadawul this year, besides the listing of Alinma Hospitality REIT Fund.

Last year, the main market witnessed 17 IPOs, namely, Elm Co., East Pipes Integrated Company for Industry, Scientific & Medical Equipment House Co., Al-Dawaa Medical Services Co., Nahdi Medical Co., Al Masane Al Kobra Mining Co., Saudi Home Loans Co., Retal Urban Development Co., Alamar Foods, Naqi Water Co., Arabian Drilling Co., Power and Utility Company for Jubail and Yanbu (MARAFIQ), Perfect Presentation for Commercial Services Co. (2P), Americana Restaurants International Plc (Americana Restaurants), Riyadh Cables Group Co., AlSaif Stores for Development & Investment Co. (Alsaif Gallery) and Saudi Aramco Base Oil Co. (Luberef).

Al Mawarid will bring the total number of Tadawul-listed companies to 207, excluding 18 REITs.

The company offered 4.5 million shares, or 30% of its SAR 150 million capital, at SAR 64 per share. 90% of offered shares were allocated to participating parties, while the remaining 10% were allocated to retail investors.

The retail coverage reached 1644.9%, while the tranche of participating parties was 54x subscribed.

A total of 245,800 retail investors submitted applications to shares worth about SAR 473.7 million.

Each retail investor received a minimum of one share, while the remaining shares will be allocated on a pro-rata basis, based on the demand size of every subscriber to total shares. Allotment ratio amounted to 2.85%.

Company Profile

The company was established in 2012 as a closed joint stock company in Riyadh. Al Mawarid’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.