Tharwah IPO achieves oversubscription during offering period

Tharwah has successfully completed the offering period for its forthcoming IPO, enjoying an oversubscription on the shares offered to the public.

In June, the Capital Market Authority (CMA) green lighted Tharwah’s request to list its shares on the Parallel Market (Nomu). The HR consulting company will float around 15% of its shares during the IPO, which according to the prospectus is expected to bring in around SR50 million ($13 million) in fresh capital.

Held between 4 to 11 August, the offering period has now been closed, with financial advisor and lead manager Value Capital announcing that the period has overperformed on initial targets. At an offer price set at SAR 62 per share, the oversubscription rate hit 107.90% – meaning that there was more demand for shares than the supply available.

Investors could subscribe to a minimum of 10 shares and a maximum of 235,000, said Value Capital. The final allocation of shares will be confirmed later today.

Interest in Tharwah is high due to its strong growth trajectory and outlook for the coming years. In 2023, the company’s revenues doubled year-on-year to SAR 79.4 million, with the large majority of revenues stemming from HR consulting and training & education services. For 2024, Tharwah expects to hit high double-digit growth.

Established a dozen years ago, Tharwah specialises in human capital consulting and capability development. The firm has served 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  is recognized as one of the leading HR consulting firms in the Middle East.

In the coming period, Value Capital will finalize the required paperwork with the Saudi Exchange (Tadawul) to set the debut date on Nomu.

Abdullah ALZahrani, CEO and Founder of Tharwah, said the company will use the IPO funds 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.