Saudi’s Tharwah plans $6.2m IPO on Parallel Market

RIYADH: The Saudi human resources advisory firm Tharwah Company has announced its intention to list its shares on the Parallel Market (NOMU) of the Saudi stock exchange, Tadawul. The move marks a strategic milestone for the company as it seeks to enhance its growth and expansion plans.

Tharwah’s proposed initial public offering (IPO) will involve the sale of 705,745 ordinary shares, which represents 15 per cent of the company’s total shares.

The offering is expected to raise approximately 23.53 million Saudi riyals (roughly $6.2 million), amounting to 17.64 per cent of the company’s pre-IPO capital.

The IPO process will commence on August 4, 2024, and conclude on August 11, 2024, with the final allocation determined on August 15, 2024. Value Capital Company has been appointed as the financial advisor and lead manager for the transaction.

Established in 2012, Tharwah specialises in human capital consulting and development, providing a range of services to its clients. The company, which was initially a Saudi limited liability company based in Riyadh, has since transformed into a closed joint stock company with a pre-IPO capital of 20 million Saudi riyals, divided into 4 million shares at a par value of five Saudi riyals per share.

Following the successful completion of the IPO, Tharwah’s capital is expected to reach 23.53 million Saudi riyals, with a total of 4.71 million shares. The company’s founder and CEO, Abdullah ALZahrani, has expressed his belief that the listing will accelerate Tharwah’s growth and expansion plans, positioning the firm for a promising future.

The approval of Tharwah’s IPO application by the Saudi Capital Market Authority (CMA) on June 3 further underscores the company’s readiness and the regulatory authorities’ confidence in its potential.

The move aligns with Saudi Arabia’s broader efforts to diversify its economy and foster the growth of the private sector, particularly in the human capital development and advisory space.