SMC issues supplementary prospectus with Tawuniya as cornerstone investor

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 5.875 million shares in the offering, representing 2.35% of the company’s post-offering share capital.

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

In accordance with the Capital Market Authority’s (CMA) rules on the offering 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 on Argaam, SMC plans to float 75 million shares on the Main Market (TASI).

The offered shares represent 30% of the company’s SAR 250 million share capital, divided into 250 million shares, each with a nominal value of SAR 1.

The book-building process and subscription period for participating entities began on May 11 and ends on May 15.

The retail subscription period will run for two days from May 28 to May 29, 2025.

The subscription is limited to two categories of investors:

Tranche (A): Participating Parties: Those qualified to participate in the book-building process (including investment funds, foreign companies and institutions, investors from GCC companies, and other foreign investors by virtue of swap agreements) to which a total of 75 million shares, or 100% of offered shares, will be allocated. 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 60 million in minimum, provided that this reduction does not apply to the cornerstone investor. The final allocation for the cornerstone investor will remain fixed at 5.875 million shares under all circumstances. Accordingly, 54.125 million shares will be allocated to participating parties excluding the shares designated for the cornerstone investor and retail subscribers.

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