Saudi’s Specialized Medical Company Eyes $500M IPO Amid Strong Investor Demand

Editorial Team

Last updated 5-06-2025

2 min

Specialized Medical Company plans to raise SAR 1,87 billion through its IPO, pricing shares at SAR 25.

The IPO was oversubscribed by almost 65 times, signalling strong investor interest.

SMC will float 75 million shares, representing a 30% stake, on the Saudi Exchange.

The company operates two hospitals in Riyadh, with three more under development.

Investors are advised to research carefully amidst the excitement around SMC's market entry.

Saudi healthcare company Specialized Medical Company (SMC) is gearing up to raise a substantial SAR 1.87 billion ($500 million) from its upcoming initial public offering, pricing each share at SAR 25. The deal values the entire firm at around SAR 6.25 billion when it lists on the Saudi main market.

The IPO has clearly piqued investors' interests—demand from institutional investors during the recent book-building exceeded an eye-watering SAR 121.3 billion, meaning orders were oversubscribed by nearly 65 times. That’s a sign of rather robust confidence, to say the least.

SMC plans to float about 75 million shares—equivalent to a 30% stake of the total business. Retail investors keen on bagging themselves a slice of the action will be able to subscribe for shares between June 15 and 16, with final allocations expected to be revealed on June 24. After the necessary regulatory boxes are ticked, trading of SMC shares will kick off on the Saudi Exchange (Tadawul).

It's perhaps little wonder why investor appetite for Saudi healthcare providers continues to be strong, especially considering Saudi Arabia's expanding population and government initiatives. Established in Riyadh, SMC currently runs two hospitals in the capital. Additionally, three more hospitals are being developed—once completed, they'll more than double the group's existing capacity. In total, SMC expects to be managing 1,276 beds and around 770 outpatient clinics.

Mind you, major IPOs like this typically generate plenty of chatter on platforms like Arageek and elsewhere, as retail investors weigh up the perks and pitfalls of diving into the market. While there's undoubtedly excitement around SMC’s IPO launch, it's worth remembering the usual cautions from financial advisors: do your reseach and invest carefully.

As always, we’ll keep one eye firmly on the process, hopefully with a hot cuppa at hand, to see how well SMC fairs in the coming weeks once its shares hit the exchange.

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