Investors put in US$91 billion of orders for the initial public offering of a Saudi hospital group that’s set to be the kingdom’s biggest listing of the year.
Dr Soliman Abdul Kader Fakeeh Hospital’s Riyadh IPO was covered 119 times by institutional investors, according to a statement on Tuesday (May 14). The company and the founding family are set to raise 2.86 billion riyals (S$1.03 billion) in the listing.
The final price was set at 57.5 riyals, the top end of a marketed range, implying a total market capitalisation of 13.3 billion riyals. The offering had sold out shortly after books opened earlier this month.
Fakeeh Care Group is among four Saudi companies that have announced their intentions to go public in the last few weeks. The kingdom’s stock exchange expects the burst of activity to continue, with more than 10 companies waiting in the wings, its chief executive officer said last week.
Abu Dhabi Investment Authority and Olayan Saudi Investment were cornerstone investors in Fakeeh Care Group’s IPO, agreeing to subscribe for 1.04 million shares and 1.96 million shares, respectively. It’s the first time the Abu Dhabi wealth fund is participating in a Saudi IPO as a cornerstone investor.
Fakeeh Care Group was founded in 1978 in Jeddah, and now has 835 beds across four hospitals and five medical centres. It plans to expand to seven hospitals with 1,675 beds and nine medical centres by 2028 to capitalise on the kingdom’s growing population, which is expected to hit about 40 million by 2030. The company plans to use the proceeds from the sale of new shares to finance its growth strategy. BLOOMBERG
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