Riyadh, Saudi Arabia — The Specialized Medical Company IPO launches a retail offering beginning Sunday, June 15, 2025, spanning two days. Individual investors can subscribe to 15 million shares at SAR 25 each, representing 20% of the IPO. The subscription window runs from June 15 to 16, with final allocations and refunds expected on June 24.

Specialized Medical Company IPO Opens Retail Subscription Window

The Specialized Medical Company IPO allows individual investors to apply for a minimum of 10 shares and up to 1 million shares. With strong institutional subscription coverage at 64.7×, retail demand will determine final allocations.

Details Behind the SMC’s IPO Offering

Approved by the Capital Market Authority (CMA) in March, the offering floats 75 million shares (30% of capital). A cornerstone investment from Tawuniya includes 5.875 million shares, or ~2.35% of total post-IPO capital—enhancing investment credibility.

Operational Profile of SMC Hospitals Saudi Arabia

Specialized Medical Company, established in 1994 and based in Riyadh, operates two acute-care hospitals:

  • King Fahd Road Hospital: 387 beds, 170 outpatient clinics
  • King Abdullah Road Hospital: 191 beds, 116 clinics
    Three additional hospitals are in development, aimed at supporting Vision 2030’s healthcare expansion.

Financial Overview Supporting the SMC Public Share Sale

Between January and September 2024, SMC recorded:

  • 170k inpatients, 914k outpatients, 141k emergency visits
  • SAR 1.368 billion in 2023 revenue
  • 78% average bed occupancy
    Insured patients now represent 75.5% of revenue, signaling strong commercial demand.

Breakdown of the Saudi Healthcare IPO Capital Structure

Shares allocation post-IPO:

  • Al-Rashed family group: ~56.8%
  • Al-Thumad and others: ~23%
  • Public float: 30% (rising to 34% with secondary trades)
    The company plans SAR 3.175 billion capex for hospital expansion and new facilities.

Advisory and Underwriting Team

Hermes Saudi and NCB Capital serve as financial advisors and bookrunners, while NCB Capital also manages subscriptions. Fifteen banks—including Derayah, Al‑Rajhi, Riyad, Aljazira, Alinma, and Alkhabeer—support the IPO.

 

 

The Saudi Standard’s View: A Maturing Healthcare Investment Case

The Specialized Medical Company IPO represents more than another listing on Tadawul—it reflects the Kingdom’s maturing healthcare sector and investor appetite for non-oil assets with strong fundamentals. With two operational hospitals, solid utilization rates, and a clear growth roadmap, SMC offers a tangible case for long-term returns anchored in rising domestic demand for quality care.

What distinguishes this IPO is not just scale or brand recognition, but operational credibility. Revenue streams are now predominantly insurance-based, aligning with market reforms. A 78% bed occupancy rate and rising outpatient volumes indicate robust throughput. While revenues from government referrals have declined, the shift toward insured and self-pay patients suggests commercial sustainability.

Moreover, SMC’s expansion plan—three new hospitals in Riyadh and SAR 3.2 billion in capex—is ambitious but measured. With a proven operator track record and solid financials, this listing aligns with Vision 2030’s dual aim: deepening capital markets and boosting healthcare capacity.

For investors, the offering provides exposure to a sector that is both defensive and growth-oriented. It reinforces the growing role of public equity in funding healthcare transformation across Saudi Arabia.