Saudi’s Almoosa Health sets the final price for its IPO, and the offering for institutions was 103 times oversubscribed
Almoosa Health Company, a healthcare provider based in Saudi Arabia, announced on Tuesday that it has finished the process of setting the share price for its initial public offering (IPO). The final price was set at $33.80 (SAR 127) per share, and the company plans to raise $449.3 million (SAR 1.7 billion).
High demand for share offering
- The final price for the shares is at the top of the price range announced earlier this month.
- The process for institutional investors received strong interest, with orders totaling around $46.1 billion (SAR 173 billion), meaning the offering was oversubscribed by 103 times, according to a statement from the Saudi company on Tuesday.
- Almoosa Health, which is making the second largest share offering in Saudi Arabia this year, said its market value will be $1.5 billion (SAR 5.6 billion) when it goes public.
- Retail investors will be able to subscribe for two days, from December 23 to 24, at the same price as institutional investors.
- Almoosa Health is offering 13.3 million shares, or 30% of its total capital, in the IPO. The shares, which will be listed on the Saudi Stock Exchange’s Main Market, will come from existing shareholders and new shares issued by the company.
- The final share allocation will be made on December 29, and any excess funds from subscriptions will be refunded by January 2, 2025.
- BSF Capital is the financial advisor and lead manager for the IPO. BSF Capital and EFG-Hermes KSA are also acting as underwriters and book-runners.
Important statement
“Looking ahead, we are focused on achieving our goals and providing value for our shareholders,” said Malek Almoosa, CEO of Almoosa Health Company.
“We believe that the Saudi healthcare market is very attractive, and with our 30 years of experience and innovative approach to patient care, we are well-positioned to take advantage of new opportunities by building modern healthcare facilities that will help us grow sustainably,” Almoosa added.
Key investors
The company has also made an agreement with The Company for Cooperative Insurance (Tawuniya) and Alfozan Holding Company. These investors have committed to buy 2.9 million shares at the offer price, which makes up 22% of the total shares being offered.
Operations
Almoosa Health is a leading healthcare provider in Saudi Arabia, offering 730 beds across two hospitals in the Eastern Province. It serves nearly one million patients each year, with a team of 326 doctors covering various medical specialties.
The company also offers additional healthcare services like pharmacies, home healthcare, and telemedicine.
For the first nine months of 2024, Almoosa Health earned $231.6 million (SAR 870 million) in revenue and made a net profit of $10.7 million (SAR 40 million).
In 2023, the company earned $260.6 million (SAR 979 million) in revenue and made a net profit of $26.1 million (SAR 98 million).
Regional IPOs
In the second quarter of 2024, there was strong IPO activity in the Middle East and North Africa (MENA) region. A total of 14 IPOs raised $2.64 billion, mostly from Saudi companies, according to EY’s MENA IPO Eye report. This was an increase from 13 IPOs in the same period last year, with proceeds growing by 45.3% compared to the previous year.
Published: 17th December 2024
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