Tamkeen Human Resources Co. IPO Overview

Tamkeen Human Resources Company ("Tamkeen"), a leading provider of human resources solutions in Saudi Arabia, has announced its intention to proceed with an initial public offering (IPO) and list its shares on the Saudi Exchange’s Main Market.

The Capital Market Authority (CMA) approved Tamkeen's application on 1 Rabi' al-Awwal 1446H (4 September 2024G) to offer 7,950,000 ordinary shares, representing 30% of the Company’s total issued share capital. The offering price will be set after the institutional bookbuilding period. Tamkeen also received conditional approval from the Saudi Exchange on 24 Thul-Hijjah 1445H (30 June 2024G) to list on the Main Market.

Company Name: Tamkeen Human Resources Co.
Market: TASI (Tadawul)
Core Activities: Human resources, recruitment, and lease of household workers
Capital: SAR 265 million
Total Shares: 26.50 million
Par Value: SAR 10 per share

IPO Details

Company Background

1. Tamkeen is a prominent Saudi-based provider of workforce solutions, offering a wide range of tailored staffing services to both corporate and individual clients across the Kingdom.

2. The Company was founded in 2018G. Tamkeen has rapidly established itself as a key player in the manpower industry, with a current market share of 4% as of FY2022G, positioning it among the top five workforce solutions providers in Saudi Arabia.

3. The Company operates through a network of 17 branches across the Kingdom, supported by a diverse pool of over 14,000 deployed workers from more than 8 nationalities, ensuring broad coverage and adaptability to meet client needs.

4. The Company’s service offerings are segmented into Corporate, Packaged Services for individuals, Hourly Services, and Contractual services for individuals, including a joint venture with Dr. Sulaiman Al Habib Medical Services Group Company (HMG), further enhancing its capabilities in specialized sectors such as healthcare.

5. The Company’s operational excellence is reflected in its impressive resource utilization rate of 94.5% as of 31 March 2023G, coupled with a 62% renewal rate for corporate clients during the same period, highlighting the trust and satisfaction among its clients.

6. The Company’s financial performance is robust, with a 17.6% revenue CAGR from 2021G to 2023G, driven by strong growth in both its Corporate and Individual Segments. The Company has achieved industry-leading profit margins, with a gross margin of 21.1%, an EBITDA margin of 13.2%, and a net profit margin of 12.0% in FY2023G, all while operating debt-free.

7. The Company is strategically positioned to capitalize on the increased workforce demand driven by Vision 2030, with high barriers to entry reducing competition and creating opportunities for greater market share.

8. Tamkeen’s leadership team, with over 75 years of combined experience in the manpower and healthcare sectors, is backed by a strong shareholder base that includes industry veterans and healthcare leaders.

Investor Groups

• Tranche (A): Participating Parties - This tranche comprises the parties entitled to participate in the book-building instructions as specified under the Instructions for Book-Building Process and Allocation Method in Initial Public Offerings, issued pursuant to CMA Board Resolution No. 2-94-2016, dated 15 Shawwal 1437H (corresponding to 20 July 2016G), as amended, including investment funds, qualified foreign investors, GCC corporate investors, and certain other foreign investors pursuant to (SWAP) agreements (collectively referred to as the “Participating Parties” and each a “Participating Party”). The number of Offer Shares to be provisionally allocated to the Participating Parties shall be 7,950,000 Offer Shares, representing 100% of the total Offer Shares. The final allocation will be made after the end of the Individual Subscribers’ subscription (as defined in Tranche (B) below), using the discretionary allocation mechanism by the Financial Advisor in coordination with the Company.
• Tranche (B): Individual Subscribers - This tranche includes Saudi Arabian natural persons, including any Saudi female divorcee or widow with minor children from a marriage to a non-Saudi person who can subscribe for her own benefit or in the names of her minor children, as well as non-Saudi natural persons resident in the Kingdom or GCC natural persons, who have an investment account and an active portfolio with a Receiving Agent. A maximum of 1,590,000 Offer Shares representing 20% of the total Offer Shares shall be allocated to Individual Subscribers. If the Individual Subscribers do not subscribe in full to the Offer Shares allocated to them, the Financial Advisor may, in coordination with the Company, reduce the number of Offer Shares allocated to Individual Subscribers in proportion to the number of Offer Shares subscribed by them.

Substantial Shareholders of the Company Pre- and Post Offering

Abdullah Sulaiman Alnagir owns a 50% stake in Tasheel Real Estate Co. that, in turn, holds 34.13% direct ownership in the company. Accordingly, Alnagir indirectly owns nearly 4.52 million shares, or 17.06% of the company's pre-IPO capital.

Expected Offering Timetable

Note: The above timetable and the dates therein are indicative and subject to change. The actual dates will be communicated on the websites of Tadawul (www.saudiexchange.sa), the Financial Advisor (www.BSFCapital.sa), and the Company (www.tamkeenhr.com).

Read the full Prospectus

Further updates regarding this IPO will be provided as more information becomes available.

- Reporting by Zaid, Sahm News team