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.
- Jadwa Investment and Riyad Capital
- 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.