Saudi human capital consultancy Tharwah gets green light for IPO

Tharwah has been granted approval by the Capital Market Authority (CMA) to go public, with the Saudi human resources consulting firm to use the proceeds to expand its footprint.

In a statement to Tadawul, Tharwah has confirmed that it intends to list its shares on the Parallel Market (Nomu). CMA formally approved the application to float its shares early June, with the news released to the market this morning.

Tharwah will float 15% of the company’s shares, with SR50 million ($13 million) expected to be raised according to its IPO prospectus. Value Capital Company has been appointed as lead manager and financial advisor.

The offering period to the market will begin on 4 August 2024 and will end on 11 August 2024. The price will be determined after the book-building period, with the final allocation determined on 15 August 2024.

Next chapter of growth

CEO and Founder of Tharwah, Abdullah ALZahrani, said the listing marks a significant milestone in the company’s journey and demonstrates the confidence its shareholders (and investors) have in ts vision and future plans.

Established in 2012, Tharwah specialises in human capital consulting and development. The firm has served over 350 clients since its inception, providing over 80.000 hours of advisory expertise and training close to 10.000 staff across KSA’s public sector. Tharwah’s track record helped the firm gain recognition as one of the leading HR consulting firms in the Middle East.

“We extend our heartfelt appreciation to all those who played a role in this achievement, from dedicated team members to our valued clients and strategic partners,” said ALZahrani.

Estimates from an analyst firm cited in the IPO prospectus show that Tharwah currently holds a 7% share in Saudi’s human capital consulting sector, with that share to rise further in 2024 on the back of over 20% growth anticipated this year. If realized, that would push Tharwah’s revenues to over SR90 million for full year 2024.

The IPO however will accelerate that path – ALZahrani said the proceeds will be used to support growth in Saudi Arabia, expand internationally into the Gulf region (new offices in the UAE and Egypt), and invest in offerings and solutions to meet best-in-class global standards.

ALZahrani stated that more than 80% of the SR50 million in proceeds will be channelled to these goals, with the remainder to be used to beef up finances and enable the company to make future dividend distributions.