Riyadh, Kingdom of Saudi Arabia – EFSIM Facilities Management Company (the “Company”, or “EFSIM”), a leading provider of integrated facilities management (“IFM”) services across the Kingdom of Saudi Arabia, today announces its intention to proceed with the initial public offering (the “IPO” or “Offering”) and the listing of its ordinary shares (the “Shares”) on the Main Market of the Saudi Exchange.
On 07/04/1447H (corresponding to 29/09/2025G), the CMA announced its approval of the Company’s application for the registering its share capital and Offering of 16,800,000 ordinary shares, representing 30% of the Company’s total issued share capital following the Offering and Capital Increase, by way of (i) the sale of 5,800,000 existing ordinary shares (the “Sale Shares”) by the Company’s current shareholders in proportion with their existing shareholding (the “Selling Shareholders”), and, (ii) the issuance of 11,000,000 new ordinary shares (the “New Shares” referred to with the Sale Shares as the “Offer Shares” and each as an “Offer Share”) for public offering. The Sale Shares represent 10.4% and the New Shares represent 19.6% of the Company’s issued share capital, respectively, upon completion of the Offering and Capital Increase, totaling 30% of the Company’s issued share capital following the Offering and Capital Increase. The Company also received the Saudi Exchange’s conditional approval on 08/12/1446H (corresponding to 04/06/2025G) to list its Shares on the Main Market of the Saudi Exchange.
The Offering proceeds, after deducting IPO-related expenses, will be distributed to the Selling Shareholders and the Company, pro rata based on their ownership in the Sale Shares and based on the New Shares, respectively. The Company’s portion of the net Offering proceeds will be used by the Company to finance its working capital, invest in new technologies and equipment, build or acquire staff accommodation and transportation assets, and for general corporate purposes.
OFFERING OVERVIEW
The Company’s IPO comprises an offering of 16,800,000 Offer Shares representing 30% of the Company’s total issued share capital (after the Company’s capital increase) by way of a sale by the Selling Shareholders and the issuance of the New Shares.
The Offer Shares will be listed and traded on the Main Market of the Saudi Exchange following the completion of the IPO and listing formalities with the CMA and the Saudi Exchange.
Subscription to the Offer Shares is restricted to Participating Parties and Individual Subscribers.
The final price of the Offer Shares will be determined by the Financial Advisor, in coordination with the Company, following the book-building process, and prior to commencement of the subscription period for Individual Investors.
The final price of the Offer Shares will be determined following the book-building period, which will commence on Monday, 10/06/1447H (corresponding to 01/12/2025G), and will end on Sunday, 16/06/1447H (corresponding to 07/12/2025G).
Any Offer Shares that are not subscribed to by Individual Investors or Participating Parties shall be purchased by the Financial Advisor, in its capacity as underwriter.
COMPANY OVERVIEW
Established in 2008, EFSIM has grown to become a leading integrated facilities management (“IFM”) provider in Saudi Arabia, serving prominent blue-chip clients and flagship projects across the Kingdom.
The Company provides comprehensive, output-based IFM solutions across critical sectors, including aviation, oil and gas, healthcare, education, and giga projects, aligned with the priorities of Vision 2030.
As a first mover in the output-based facilities management segment, EFSIM has established a nationwide presence spanning all major regions in Saudi Arabia, with a workforce of over 8,000.
Offering over 75 services for specialized sectors, including aviation, education and oil and gas, the Company built its success on a proven track record, distinguished services, deep trust, and reliability.
The Company benefits from access to advanced systems and frameworks through its affiliation with EFS Group, a regional FM platform operating across 26 countries.
EFSIM IN NUMBERS
Over 75 service lines offered, enabling comprehensive end-to-end IFM solutions.
118 active service contracts as of 31 March 2025G, managing 32+ million square meters of facilities nationwide, with a client retention rate exceeding 90% over the past 10 years, supported by innovative, high-quality service and consistent delivery.
Highly skilled workforce of 8,000+, including 991 directly employed Saudi nationals.
Recorded SAR 803 million in revenue in FY2024G, with strong momentum from recurring contracts and variation growth, with revenue CAGR representing 54.2% from 2022 to 2024. The Company also achieved 9M 2025G revenues of SAR 725 million, representing 24.7% growth compared to 9M 2024G.
Secured new contracts totaling SAR 3.6 billion between FY2022 and 31 March 2025G, resulting in a contractual backlog of SAR 1.8 billion as of 31 March 2025G, with a weighted average remaining contract life of 3 years.
In 2025, until 31 July 2025, the Company was awarded new contracts with a total combined value exceeding SAR 930 million.
Achieved SAR 93 million in Adjusted EBITDA in FY2024G, implying a healthy Adjusted EBITDA margin of 11.6% in FY2024G, reflecting disciplined cost management and operational efficiency. This performance continued into 9M 2025G, with Adjusted EBITDA reaching SAR 83 million, growing 59% compared to 9M 2024G, while maintaining margins at 11.5%.
Realized SAR 52 million in Net Profit for the Year (Period) in FY2024G, translating to a Net Profit margin of 6.4% in FY2024G. Further, the Company delivered SAR 44 million in Net Profit for the Year (Period) in 9M 2025G, implying a Net Profit margin of 6.1%.
Tariq Chauhan, CEO and Board Member of EFSIM Facilities Management Company, said: “EFSIM has played a pioneering role in the development of Saudi Arabia’s integrated facilities management sector by delivering integrated, technology-enabled solutions to some of the Kingdom’s most iconic companies and projects. Our over 17-year track record reflects not just operational excellence, but a commitment to national transformation, in line with Vision 2030. As the shift toward performance-based, outsourced delivery of facilities management services accelerates, EFSIM’s strong reputation for high-quality service delivery uniquely positions it to capture this market opportunity.
He added: “” With a strong contractual base, high client retention, and a scalable model, we are well-positioned to lead the next chapter of facilities management in Saudi Arabia. The IPO will catalyze our growth as we continue to shape the future of the industry by investing in technology, enhancing operational efficiency, and expanding our service offering. Through this offering, we aim to create long-term value for our stakeholders while reinforcing our role as a national champion in the Kingdom’s built environment.””
KEY INVESTMENT HIGHLIGHTS
Large Addressable Market Underpinned by a Favourable Economy and Strong Facilities Management Industrial Fundamentals
Saudi Arabia is one of the largest economies in the MENA region, with its GDP forecasted to grow at a 3.3% CAGR over the next five years, enabled by a significant investment pipeline in mega- and giga-projects valued at over SAR 3.5 trillion in 2024, driving opportunities in facilities management (“FM”).
The total FM market in Saudi Arabia is valued at SAR 109 billion in 2024, the largest in the GCC region, with the output-based FM segment (EFSIM’s core focus) estimated to account for 26% of the total FM market.
Output-based FM is expected to outpace the wider FM market, growing at a 12% CAGR from 2024 to 2029 to reach 32% of the total market share, reflecting an ongoing trend toward market formalization.
Saudi Arabia’s FM spend per capita remains significantly lower than the UAE and Qatar, indicating substantial headroom for growth as the market matures.
Sector growth is supported by a broader economic transformation under Vision 2030, including increased infrastructure spending, a shift away from traditional O&M, and higher expectations for service accountability. Market demand is reinforced by structural drivers such as:
Expansion of giga projects and new urban developments
Growth in the hospitality, aviation, and industrial sectors
Rising tourism, population, and urbanization
Increasing foreign direct investment (FDI)
The Company’s strategic framework is designed to support the evolving demands of the Saudi economy, enabling long-term revenue expansion while maintaining service excellence, operational resilience, and financial sustainability.
A Distinguished IFM Provider with a First-Mover Advantage and a Strong Operational Moat Allowing it to Capitalize on Market Trends
In a market characterized by the limited number of players capable of managing large-scale, output-driven contracts, the Company has emerged as a highly organized and independent player, delivering comprehensive world-class services that meet the demands of clients seeking reliability and excellence.
By engaging giga project clients from the early development stages, the Company fosters long-term relationships that enhance contract visibility. The Company’s proactive approach positions it to capitalize on the giga project segment, projected to be the fastest-growing within the output-based FM market, with a 26.4% CAGR from 2024 to 2029.
Successful customer-first approach supports an attractive client retention rate of 95% in FY2024G with recurring clients and long-term contract extensions across sectors.
Market penetration strategy focused on entrenching itself into flagship projects, offering comprehensive and bespoke solutions, making it one of the preferred providers of choice.
Leveraging its strategic relationship with EFS Group, a global facilities management powerhouse, the Company benefits from industry best practices while retaining operational autonomy. This unique structure allows for the integration of global expertise with local insights, providing access to a vast network and valuable industry knowledge. With operations in 26 countries, the Company can draw upon a wealth of knowledge and know-how from EFS Group to enhance its service delivery, while offering an independent and self-sufficient operation in the Kingdom.
Track Record of Delivering High-quality Facilities Management Solution Across Multiple Sectors Further Adding to the Business Resilience
The Company’s business model is built upon three core pillars: excellence, compliance, and sustainability (ECS); focusing on the highest quality standards, driving superior service delivery and operational excellence.
Comprehensive portfolio of over 75 services encompassing soft services, hard services, specialized services, and fully integrated facilities management solutions, allowing for a wide range of client needs to be addressed and ensuring seamless operational efficiency and long-term asset value optimization.
Diversified customer base with 118 active contracts as of 31 March 2025 across seven diversified sectors, including giga projects, aviation, healthcare, commercial, industrial, and education, supported by unique capabilities.
Deep niche sector-specific capabilities and scalability differentiate EFSIM’s offerings from other service providers, positioning it to capture emerging opportunities in specialized sectors, including healthcare, aviation, oil and gas, and others.
Nationwide Presence Serving Prestigious Local and International Blue-chip Clients and Flagship Projects Supported by a Robust Service Delivery Infrastructure
Operations are powered by over 8,000 deployed resources, including 991 directly hired Saudi nationals.
To institutionalize professional development, the Company has established dedicated Centers of Excellence across Riyadh, Jeddah, and Tabuk, serving as pivotal hubs for employee training, technical specialization, and service innovation.
Strong technology edge through specialized FM platform, FMPro, optimizes client experience through efficient data management, reporting, and performance benchmarking, with a strategy to integrate IoT and Artificial Intelligence applications to enhance equipment performance, reduce energy consumption, and drive operational efficiencies, strengthening competitive moats.
Robust on-ground network, including more than 58 staff accommodations, 25 satellite stores, 6 offices, and 2 central warehouses, supports service delivery.
90% workforce retention rate in FY2024G, strong compliance culture and a track record of safe operations, achieving a TRIR (Total Recordable Incident Rate) of 0.08 in FY2024G.
Outstanding Retention Rates Coupled with Sizeable New Awards Translating to a Substantial Backlog with High Visibility
Impressive client retention rate exceeding 90% over the past 10 years, supported by consistent service delivery, strong client relationships, and repeat business across sectors.
The Company’s contractual backlog reached SAR 1.8 billion as of 31 March 2025G, with a weighted average remaining contract life of 3 years, providing high visibility on future revenues, supporting continued financial stability and predictable cash flows.
Strategically diversified backlog, diversified across sectors, with approximately 51% in giga projects and 22% in aviation as of 31 March 2025G, reflecting a strong position in high-growth and long-cycle segments.
Stellar Financial Performance on the Back of a Contracted and Growing Top Line and Sustainable Operating Margins Providing Robust Returns to Shareholders
Delivered strong financial performance, with revenues increasing from SAR 338 million in 2022 to SAR 803 million in 2024, reflecting a 54% CAGR during this period. This momentum continued into 9M 2025G, with revenues reaching SAR 725 million, growing 24.7% compared to 9M 2024G.
Gross profit margin rose from 11.1% in 2022 to 13.8% in 2024, while Adjusted EBITDA margins improved from 8.8% to 11.6% over the same period, supported by cost discipline and operational efficiency. In 9M 2025, gross profit margin improved to 14.1%, and Adjusted EBITDA margins were maintained at 11.5%.
Conservative debt strategy, with Net Debt-to-Adjusted EBITDA Ratio of 0.5x as of 30 September 2025G, ensuring sufficient leverage capacity for future growth.
Highly Experienced Team with a Clear Vision for Future Growth and Commitment to Innovation
EFSIM’s seasoned leadership team with over 120 years of combined FM experience has been instrumental in driving the Company’s growth, resilience, and market leadership. Their strategic vision has enabled EFSIM to navigate industry dynamics, foster innovation, and align with Vision 2030, ensuring long-term success and value creation.