One of the leading healthcare providers in the Kingdom of Saudi Arabia, Riyadh-based Specialized Medical Company (SMC), recognized as a center of excellence for delivering integrated healthcare services across diverse specialties, has announced its intention to proceed with an initial public offering (IPO) and list its ordinary shares on the Main Market of the Saudi Exchange.
On 26 March 2025G, the Capital Market Authority (“CMA”) approved the Company’s application for registering its share capital and the offering of 75,000,000 ordinary shares (“Offer Shares”), representing 30% of the Company’s total issued share capital. The offering price will be determined at the end of the institutional bookbuilding period.
The Offer Shares will be offered for subscription to individual and institutional investors, including institutional investors outside the United States in accordance with Regulation S under the US Securities Act of 1933G, as amended (“US Securities Act”). The Offering’s net proceeds will be distributed to the Selling Shareholders. The Company will not receive any part of the Offering Proceeds.
SMC is strategically positioned at the forefront of Riyadh’s evolving healthcare landscape. As the capital and largest city of Saudi Arabia, Riyadh is at the heart of the Kingdom’s Vision 2030 economic and social transformation. Rapid population growth, major infrastructure projects, and large-scale investments in healthcare are driving a significant increase in demand for high-quality healthcare services. Between 2023G and 2035G, the population of Riyadh is expected to expand from 7.3 million to 9.5 million, and approximately 1,500 additional hospital beds are expected to be needed to meet the Kingdom’s targeted healthcare coverage.
Despite these investments, the gap between supply and demand for hospital beds persists, particularly in an up and coming area such as Northern Riyadh, which is experiencing rapid urbanization. SMC’s expansion plan—comprising three new hospitals in high-growth, strategically selected locations—directly addresses this need. Once operational, these hospitals are expected to allow SMC to capture over 25% of the new private sector hospital capacity in Northern Riyadh, positioning the Company as a leading private healthcare provider in one of the capital’s fastest-growing corridors.
