UAE-based healthcare services provider Burjeel Holdings on Monday said it plans to list 11 percent stake in an Initial Public Offering (IPO) on the main market of the Abu Dhabi Securities Exchange (ADX).
The IPO of NRI entrepreneur Shamsheer Vayalil's firm will open for subscription on September 30 and will close on October 4. The company's shares will start trading on the ADX on October 10.
Burjeel Holdings is set to be the first privately-owned firm to go public in the UAE this year. The IPO announcement follows close on the heels of the acquisition of a 15 percent stake in Burjeel Holdings by Abu Dhabi-based International Holding Company (IHC) led by Sheikh Tahnoon Bin Zayed Al Nahyan, the country's national security adviser and brother to the UAE's president.
IHC is the UAE's largest company in terms of market value. According to the issued prospectus, the company plans to offer about 550.7 million shares, including 350.3 million existing shares to be sold by VPS Healthcare Holdings, which owns 79.8 percent of Burjeel Holdings.
Of the offered shares, 10 percent are to be allocated under the first tranche and 90 percent under the second tranche. The company's planned listing will provide investors with an opportunity to gain exposure to one of MENA's leading private healthcare service providers with a vision to ensure quality healthcare and clinical excellence across the region, it said in a release.
In 2021, the Group treated 105 thousand in-patients and 4.8 million out-patients across its network. For the year ended December 31, 2021, and the six months ended June 30, 2022, the group had revenues of AED 3,351.0 million and AED 1,898.4 million, and net profits of AED 234.1 million and AED 152.9 million, respectively.
It has a diversified portfolio of 16 hospitals, including the flagship facility Burjeel Medical City, and 23 medical centers, across the UAE and Oman. In August 2022, as part of its disciplined approach to capital expenditure and regional expansion, Burjeel Holdings signed a non-binding MoU with Saudi Arabia's Ministry of Investment, which will see the Group collaborate with KSA institutes and healthcare organizations and invest up to $1 billion in the Kingdom by 2030.
"As we mark another significant milestone in our journey today, I am confident that our robust business model, relentless focus on clinical excellence, world-class people and strong commitment to governance will all play key roles in the next chapter of our story, Vayalil said.
First Published: Sept 26, 2022 11:18 PM IST
