Saudi healthcare firm said to seek up to $700m in IPO

Photo by Henk Vrieselaar on Unsplash

Dr. Sulaiman Al Habib Medical Group is seeking to raise as much as 2.63 billion riyals ($700 million) from an initial public offering that starts next week, according to people familiar with the matter.

The private health-care operator, one of the largest in Saudi Arabia, will price the shares at 43 to 50 riyals a share, the people said, asking not to be identified because the talks are private. Based on that price range, and a planned sale of 15% of the company, the business will be valued at 15.1 billion riyals to 17.5 billion riyals.

The book-building process for the IPO will start on Feb. 10 and the shares will be priced on Feb. 20, according a document published in the company’s website. The company will offer 52.5 million shares. The company didn’t immediately respond to a request for comment.

Financial advisers:

  • Jadwa Investment and Riyad Capital

Bookrunners:

  • Jadwa Investment, Riyad Capital and EFG-Hermes

2019 financial details:

  • Revenue: 5.03 billion riyals
  • Ebitda: 1.19 billion riyals
  • Profit: 870 million

The hospital operator’s share sale is the first local listing after Saudi Aramco raised more than $29 billion in December in the world’s biggest IPO. That sale relied mainly on domestic investors.

Dr. Sulaiman Al Habib initially planned to sell shares in 2016, people familiar with the matter said at the time.

The company owns and runs seven health-care facilities and two pharmacy firms, and also operates and manages another seven health-care centers and two medical-solutions businesses, according to the listing document. It has operations across Saudi Arabia, the United Arab Emirates and Bahrain.

Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.