Scientific & Medical Equipment House issues prospectus for IPO on Tadawul

Logo of Scientific & Medical Equipment House Co.

Scientific & Medical Equipment House Co. (SMEH) announced its prospectus for the initial public offering (IPO) of six million shares, or 30% of its SAR 200 million capital on the Saudi Exchange (Tadawul). 

In November 2021, the Capital Market Authority (CMA) approved an application by the company to offer a stake to the public on the main market.  

The institutional offering and book-building period will run for 11 days from Jan. 17 to Jan. 27. 

The retail offering will last four days, starting from Jan. 31.

The IPO targets two tranches:  

Participating parties: This tranche comprises the parties entitled to participate in the book-building process as specified under the book-building instructions. The number of shares that will be allocated initially is 24 million, representing 100% of the total IPO. Final allocation of the offer shares will be made after the end of the subscription period for individual investors. The lead managers shall have the right to reduce the number of shares allocated to participating parties to 5.4 million shares, representing 90% of the total offer shares. 

Individual investors: This tranche comprises Saudi Arabian natural persons, in addition to any non-Saudi natural person who is resident in the Kingdom or any GCC natural persons, provided they have a bank account with one of the receiving entities and are allowed to open an investment account. The number of shares offered for retail investors amounts to 600,000 shares maximum, or 10% of total offered shares.
 

SMEH is one of the providers of medical and non-medical operation, maintenance, catering and contracting services for the public and private sectors.
 

 The company's current capital stands at SAR 200 million, divided into 20 million shares, with a fully-paid nominal value of SAR 10 per share.
 

SMEH has been working in the field of operation, maintenance and healthcare since 1979. The firm is considered one of the leading companies in this field, especially as it received ‘Class A’ rating from the Ministry of Municipal, Rural Affairs and Housing for several years.
 

The company provides medical, administrative and technical cadres, such as doctors, specialists, consultants, nurses and technicians for hospitals and medical facilities, which are operated in accordance with the approved operational specifications. The firm gives priority to national competencies to hold the positions of such contracts. It also provides the necessary scientific knowledge for medical staff, through holding training programs and applying modern management methods in hospitals and medical facilities.
 

SMEH and its subsidiaries have 19 commercial agencies for leading and international companies in the field of medical devices and equipment.
 

The company owns stakes in the following limited liability companies:
 

- Girgas Pharmaceutical Warehouse Co., a wholly-owned subsidiary, which undertakes the activities of pharmaceutical warehouses, retail sale of devices, equipment and medical supplies. Girgas holds a 99% stake in Naqaa Al Mutaheda.
 

- Roaa Al Hymaya, a 100%-owned subsidiary, which specializes in import, export, wholesale and retail sale of electronic, electrical and mechanical equipment and devices, laundries, incinerators equipment, pumps, generators and their spare parts and maintenance, in addition to the maintenance of specialized medical devices.
 

- NABD Medical Industries, a 51%-owned subsidiary, which manufactures pacemakers, electrocardiograms, catheters, as well as feeding and suction tubes.
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